Good Product Availability as Demand Remains Subdued

AS THE summer holiday period approaches, there are good levels of product availability as demand remains subdued across most sectors.

This is according to the latest report from the Construction Leadership Council’s Material Supply Chain Group.

Meeting in the wake of the King’s Speech, the group welcomed the new government’s planning reforms, but says it wants to see further details and specific plans to boost housing and construction and stimulate key sectors of the industry.

Demand Remains Subdued

In the report, the group says it is difficult to see the market improving before the turn of the year, and suppliers have adjusted capacity to meet current demand.

Looking ahead, some members of the group expressed concern over suppliers’ ability to quickly increase output to meet any potential spike in demand. As stated in the June 2024 Material Supply Chain Group report, the key to this is “accurate forward forecasts and longer lead ordering times”. Manufacturers can ramp up production in 2-3 months but require forward knowledge of orders to do so.

The group also expressed concerns about a shortage of labour, particularly in areas requiring new skills, such as the installation of heat pumps. The effect of these shortages are likely to be further exacerbated when construction activity increases.

Planning for the Future

Going forward, the CLC will be campaigning for joint engagement with government. The group says it would like to have round table discussions with ministers, to identify touch points with government that need addressing, in order to plan effectively for the future.

The CLC’s continuing advice to everyone involved, particularly housebuilders and SME contractors, is to plan in advance, work closely with your supply chain and communicate your requirements early with suppliers, distributors and builders’ merchants. As we learned during the pandemic, collaborative, ongoing communication throughout the whole supply chain is mutually beneficial and essential to a healthy, productive UK construction industry.

The Material Supply Chain Group statement comes from it’s co-chairs, John Newcomb, CEO of the Builders’ Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association.

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