Collaborate and Communicate to Manage Uptick says CLC

COLLABORATION and communication are key to managing product availability during an anticipated uptick in demand.

That’s the latest advice according to the most recent report from the Construction Leadership Council’s Material Supply Chain Group. The report also confirms that there are currently good levels of product availability across the board.

Inclement weather and stubbornly high interest and mortgage rates in the first half of the year slowed activity and demand. But there are now signs that RMI work is picking up. Moreover, Group members expressed cautious optimism going into the second half of the year, and particularly when looking ahead to 2025.

Uptick in Demand

Many are looking to the new government to help drive the recovery by acting quickly to support UK construction. Measures required include those to promote housebuilding, infrastructure, energy efficiency retrofit and planning reform. Such clarity, together with anticipated rate cuts from the Bank of England would help to stimulate key sectors of the industry.

In anticipation of an uptick in demand, manufacturers have highlighted the need for accurate forward forecasts. This will ensure capacity is set at the correct level to match demand.

Collaborate and Communicate

The CLC’s continuing advice to everyone involved, particularly housebuilders and SME contractors, is to plan in advance. Additionally, 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.

Concrete Tiles and PIR Insulation

The Supply Chain Group reports some isolated reports of minor availability issues. These are for certain profiles of concrete roof tiles, aircrete blocks, doors and some timber products. However, these are limited to particular regions or manufacturers and evidence suggests they are likely to be temporary.

Prices are relatively stable with the level of any increase mostly low and manageable. The main exceptions, as mentioned last month, are PIR insulation which has experienced a more significant price increase, and timber, where prices for some products continue to fluctuate.

Regarding shipping, the Group continue to monitor the impact of hostilities in the Middle East on supply lines between Asia and the UK via the Red Sea, but any impact on costs and delivery times are said to be modest and manageable.

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

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