Find out the latest developments in the construction industry’s materials shortage, and what to expect in the coming months.
Throughout the last year, the cost of building materials has become a common issue and frequent stumbling block across the construction industry in the UK, and around the world.
A number of factors have contributed to the soaring costs, though the two most commonly cited on our shores are Brexit and the lingering effects of the pandemic.
According to recent data from Checkatrade, the average cost of home improvements increased by 17% in January, meaning homeowners had to pay an extra £379 compared to the prices paid 12 months ago.
Findings from the Construction Leadership Council (CLC) go some way in explaining those figures, stating: "Price increases of 5-10% have been announced by many manufacturers so far this year, and energy-intensive products have increased by as much as 20%. Such inflation is proving a root cause of serious difficulties for contractors."
Is there still a materials shortage?
While shortages do seem to have eased somewhat in the early part of 2022, a number of building materials are still proving hard to come by, most notably roofing products, bricks and some electrical products, particularly those using semi-conductors and microchips.
Adjusting to new rules and regulations implemented due to Brexit has proved difficult. Extra red tape has meant delayed shipments and changes to visa laws have led to a sizeable labour shortage, particularly HGV drivers and construction workers.
Material production also significantly slowed through the pandemic, which when combined with surging demand for home improvements, meant a huge backlog of work that is still having a knock-on effect today.
Are material costs still rising?
Material costs remain relatively volatile, however, the Department for Business, Energy and Industrial Strategy (BEIS) (via Architects Journal) has found that prices seem to be levelling out for the first time since September 2020.
This again could shift in the coming weeks and months, though. The CLC has warned that the latest sanctions on Russia will likely have an "enormous" impact on global trade, though did point out that the full effect of the war on building material supplies to the UK was yet to be determined.
Combined with the imminent surging energy costs, that will no doubt make the production of raw materials more expensive, it’s difficult to see prices returning to ‘normal’ anytime in the immediate future.
What does this mean for builders, projects and construction sites?
These fluctuating prices and supply issues are likely to continue to some extent, at least in the short term, meaning more headaches for tradespeople when it comes to accurately pricing and providing timescales for jobs.
For those working in trade, this could mean looking for alternative, more readily available materials to complete jobs, buying more common building materials in advance where possible, avoiding fixed quotes and being less flexible with revisions.
Despite all of this, Checkatrade also reported that January was its busiest month on record, with more than 4.1 million searches carried out for tradespeople on the platform.
For now, it generally appears to be more of the same in the coming months for tradespeople. Construction demand still remains high, though, material shortages and costs will likely continue to hold things up, perhaps just not quite as drastically as in 2021.