Product Availability Good but PIR Insulation Prices Remain Volatile

GOOD LEVELS of product availability continue across the board in the latest report from the Construction Leadership Council’s (CLC) Material Supply Chain Group.

However, there are reports of price volatility affecting PIR insulation boards, feeding into housing projects. PIR insulation prices have increased significantly due to issues around the supply of chemicals used in their manufacture, and a continued rise in demand could drive further price increases, the CLC says.

The report also shows a steady increase in timber prices as the result of reduced production and stock in a slowing market.

Supply

Supply lines via the Red Sea continue to be managed with only slight delays, although there are reports of increased container costs on this route. The group is also aware that hostilities in the region have the potential to widen and says it is monitoring this to assess the potential impact on other routes. In addition, the Asia/UK route is seeing further bottlenecks caused by the prolonged drought reducing traffic through the Panama Canal.

Merchant Sales

Throughout the year sales through builders’ merchants have shown a direct relationship between the weather and construction activity. Inclement weather dampened demand for landscaping and groundworks throughout the first quarter, but more recent spring-like conditions have driven an improvement in demand.

While the group says it does not anticipate a dramatic uplift in activity, optimism is increasing as summer approaches. Many say they are now planning for an uptick at the year end and into 2025, which will necessitate careful planning to ensure adequate lines of supply.

The CLC’s advice to everyone involved, particularly SME contractors and housebuilders, is to plan in advance, work closely with your supply chain and communicate your requirements early with suppliers, distributors and builders’ merchants.

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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