Construction Materials in Short Supply

The UK building industry is in somewhat of a supply crisis as dwindling materials are bringing construction and demolition sites to a standstill in some cases. The issue has led government to ask the Construction Leadership Council to monitor the situation closely, so they have now set up a products availability taskforce.

Shortages in new building materials which are often recycled by demolition and waste management companies, along with escalating industry prices caused by a combination of Covid, Brexit, and shipping hold ups have caused construction projects up and down the country to face extended waits for their supplies.

As the country re-opens after recent lockdown restrictions, the construction industry has led the way in the economic recovery with business booming. However, the high demand and the lack of availability for a number of building materials as seen costs start to inflate.

Cement

Cement has been facing supply issues even though it has recently improved according to the Mineral Products Association (MPA) chief executive Nigel Jackson, he said “We’re not aware of any projects impacted by bulk cement shortages”.

Producers have also struggled to source transport to deliver cement throughout the country, but the shortages in cement bags should hopefully be resolved very soon.

Plastics

Back in April 2021 a report released mentioned that due to the global demand for plastics, overall supply and distribution was now becoming a problem, raw material shortages have restricted production of polyethylene, commonly used in pipe production, and polypropylene plastic used for manufacturing roof membranes.

Steel

UK manufacturing trade association British Electrotechnical and Allied Manufacturers Association (BEAMA) said that the 2020 reduction in steel production had caused a global shortage, with the increased demand now increasing the overall price. The availability of steel remains an issue for the whole construction industry with no end in sight.

Aggregates

Infrastructure was one of the first industry sectors to exceed pre-pandemic output levels which has led to a huge demand for aggregates throughout the UK. However, government is planning to decarbonise the economy by banning red diesel, a fuel for excavators, machinery commonly used for moving aggregates and by demolition companies for building demolition work.

Timber

Wood is another material where prices have soared over the last 12 months, and it continues to increase with housebuilding and refurbishment work on the rise. Demand in softwood orders has been forecast to increase globally for the next 5 years!

Spending on home renovations in the UK market is up by nearly 20% compared with January 2020, people who normally spend on holidays and dining have now invested in their property.

It is not just higher prices and stock shortage, delays in deliveries are getting worse.

Social media feeds for popular DIY stores regularly have questions about ‘out of stock items’ that are taking months to deliver. That is because wholesalers and builders’ merchants favour regular customers, which is why large infrastructure projects such as HS2 and Crossrail are unlikely to be affected by the problem.

Global shipping is still struggling since Covid caused empty containers to be stacked up in ports instead of returning to Asia. Since May last year the cost of sending a container from China to Europe jumped from US$1,475 to US$8,303 (May 2021).

Bricks and bulk materials like gravel and sand are mostly locally produced, 76% of materials are made in Great Britain, but well over 50% of sawn wood for example is imported from Europe.

Inflated prices may harm companies that have quoted and negotiated contracts at pre-pandemic prices, the whole industry is also facing higher building insurance costs after the Grenfell disaster.

Unfortunately, there is not too much businesses can do other than plan ahead and wait patiently for stock to arrive, the UK is a modest buyer of construction materials compared to the US, China and the Middle East who will all be facing the same problem.

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