Materials Shortages Show Slight Easing During August Holiday Period

ALTHOUGH THE materials shortages supply situation has not changed substantially, there has been a temporary easing in August 2021. This is according to the Construction Leadership Council Product Availability working group in its latest monthly statement on the UK materials shortage crisis.

Materials Shortages August 

The slight easing of shortages in August 2021 is probably due to the holiday period and some domestic customers delaying or cancelling projects due to higher costs or cost uncertainty, the statement says.

Roofing Products in Shortest Supply

Timber, cement, roofing products, bricks, blocks, insulation, steel and cable management systems remain the products in shortest supply, while global shortages of semi-conductors are a cause for concern in the lighting and appliance sectors.

Prices

Although product and material price inflation has slowed, indications are that it will be 2022 before prices stabilise, with some manufacturers still to implement double digit price increases to recover current and future cost inflation.

Transport

Haulage and the lack of availability of drivers, are now the major concerns affecting distribution. Some suppliers are asking builders’ merchants to collect their orders as they cannot get enough drivers to complete deliveries. Regional distribution is a particular issue for deliveries to Scotland and the south west of England.

The problem is not limited to our sector, and with similar haulage issues affecting a wider distribution network there is no short-term fix. The Department for Transport is engaging with the freight sector and hauliers to look at both interim and longer-term solutions, which require collaboration between government and the sector.

Shipping

Container shipping continues to affect imports. Key ports in China are suffering reduced capacity due to Covid, but the backlog extends beyond China throughout distribution centres worldwide. This is forecast to continue through the peak Christmas season into early 2022. With capacity at a premium, container prices remain high. These rates are not sustainable in the long term and when demand signals change, we are likely to see prices reduce.

HS2 Concerns

There is concern about future requirement for aggregates and other key products when HS2 demand is at its peak in 2022/23. Projected volumes are being shared with industry trade bodies, key suppliers and the Construction Leadership Council Product Availability Group to help provide greater clarity and confidence about the industry’s ability to deliver HS2 as well as other projects. This is a particular concern for smaller builders, who have struggled to compete for supply during the current period of demand.

>>Read more about the materials supply crisis in the news