It is challenging times for those in the Construction industry, with The Federation of Master Builders (FMB) warning of the pressure that building material shortages is putting on businesses, leading to delays in building works.
Builders, merchants, house builders and those looking to carry out D.I.Y improvements in their homes, are feeling the impact. It is not only insulation materials that are high in demand but short in supply, but building materials such as timber, cement, and steel.
According to the Construction Leadership Council (CLC), unprecedented global demand due to increased building project activity, coupled with building material shortages and decreased supply, will lead to higher prices for materials throughout 2021.
In this blog, we address the contributing factors to the building material shortages, the impact, and the outlook for the Construction industry.
The impact of the Coronavirus pandemic on building material shortages
The coronavirus pandemic has significantly impacted the Construction industry. Lockdowns across the country, has meant that many manufacturers and businesses in the supply chain had to close completely and therefore the manufacturing of and supply of material ceased. At the same time, it has been reported that there was a significant increase in building and home improvement activity in 2020, and therefore a greater demand for builders and materials. Understandably, many people spent more time at home and wanted to keep themselves busy with home renovation jobs and improvements.
Even though the UK has opened, and most restrictions removed, manufacturers have had to contend with workers having to isolate and therefore the impact of the coronavirus pandemic is very much still present.
The impact of earlier closures during lockdowns, as well as workers having to stay at home and isolate, has contributed to the position the UK Construction faces with a shortage of building materials.
Brexit
The disruption to the supply of key materials, is probably felt greatest for those that are imported. This could be partly attributed to the coronavirus pandemic, global demand, and partly due to the UK no longer being part of the EU.
It has been estimated, that approximately 60% of imported materials used in the UK Construction industry come from the EU.
This has meant that the supply times for key materials has lengthened. Not only the supply time, but the volume of material supplied, to ensure fair distribution. This has led to some manufacturers putting a cap on what can be ordered, and therefore causing further disruption up the supply chain.
Raw materials
The insulation industry has seen significant impact from the global shortage of raw materials. This again can be attributed to closures during factory closures because of the coronavirus pandemic.
Many manufacturers are struggling to keep up with the demand.
Building shortages resulting in price increases
Prices have increased due to lengthening lead times and increasing demand, which is making it difficult for manufacturers and suppliers to build up stock levels.
Industry leaders are predicting that price increases will continue to rise throughout the remainder of 2021.
Alternative insulation materials for your building project
We appreciate the challenges that those working in the Construction industry are facing now, with high demand, lengthy supply times, restrictions on the volume you can order and increased prices.
However, it is likely that manufacturers and the supply chain will over time catch up and be in a good position to supply demand levels.
Our Sales Distribution Manager, Brian Fulcher, said,
“We understand the challenges builders are facing. We have long-standing relationships with a range of insulation manufacturers and access to quality roof, wall and floor insulation products. There are alternatives for those insulation products that are harder to get hold of. We urge builders to get in touch to see if we can help, to minimize any disruption to your building project.”
