The Construction Leadership Council (CLC) has urged construction companies not to over-order and to work collaboratively, amid shortages of construction products and materials.
Supplies of bagged cement and certain electronic components are presenting “growing areas of concern” in addition to widely reported shortages of timber, steel, pitched roofing, plastics, and paints.
John Newcomb, CEO of the Builders Merchants Federation, and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Product Availability working group said that UK construction activity since the start of March had been “very robust”, with new housing and repair, maintenance and improvement together with infrastructure leading the way.
They said: “We now also see increasingly strong performance in the commercial and industrial sub-sectors, applying further strain on the supply chain.
“Back in March, we warned that product availability would worsen before it improved. This is proving to be the case; projections indicate that strong demand will continue over the next six months. This mirrors similar projections worldwide, as major economies such as China, the US and the EU surge following lockdowns.”
Newcomb and Caplehorn said most of the shortages of products and raw materials impacting the market have been driven by both global and domestic supply and demand factors.
They added: “In addition to availability and resulting longer lead times, there is an impact on prices. The Office for National Statistics projects a rise of 7%-8% in material prices, with increases for certain materials, such as timber, expected to more than double during the course of the year.
“New rules on hauliers have exacerbated the shortage of drivers in the UK, which is another contributing factor adding to delays and lead times not only in the construction industry but many other sectors as well.”
The shortages are proving to be more acute for SME builders who are used to buying the products they need that day from local merchants. Caplehorn and Newcomb said that there is evidence that those firms who can buy in advance and in large quantities are having fewer problems.
They said: “The Construction Leadership Council stresses that wherever possible the industry must work collaboratively to manage this unprecedented situation to everyone’s benefit.”
They suggested making allocations as transparent as possible where products are in short supply so customers can see they are being treated fairly, as well as advising customers not to over-order unnecessarily. In turn, they suggested that manufacturers should not promise delivery dates that cannot be achieved, only to cancel at short notice.
They added: “The unprecedented levels of demand, both in the UK and globally, is set to continue for the foreseeable future, placing the importance of forward planning and communication front and centre. Only by working positively together can we endeavour to provide customers with the products and solutions they require to complete projects in a timely manner.”
