It is still too early to ascertain what effect sanctions against Russia will have on building materials.
That’s according to the latest construction product availability statement from John Newcomb, CEO of the Builders Merchants Federation, and Peter Caplehorn, CEO of the Construction Products Association.
Newcomb and Caplehorn are co-chairs of the Construction Leadership Council’s Product Availability working group. They said stocks and availability of most products is good, with strong sales in all categories thanks to a mild winter.
However, there are still supply challenges affecting bricks, aircrete blocks, roof tiles, steel lintels, cable trays and trunking, manhole covers, gas boilers and some electrical products.
But they warned that price inflation, caused by a shortage of raw materials, rising energy, freight, and labour costs, is “of greater concern than availability”.
Many manufacturers have announced price increases of 5-10% so far this year, while energy-intensive products have increased by as much as 20%.
While road haulage problems have lessened as the shortage of HGV drivers has reduced, transport costs remain high, with shipping rates still eight-to-nine times higher than pre-covid levels and air cargo rates seven times higher.
Meanwhile, they said the effect of the war in Ukraine and subsequent sanctions against Russia on building material supply in the UK “is still to be determined”.
Russia, Ukraine and Belarus only accounted for only 1.25% of building products imported into the UK last year. But rising prices of raw materials such as aluminium, copper, bitumen, and pig-iron and iron ore used in the manufacture of steel, could yet have an effect on prices.
Newcomb and Caplehorn also warned there could be an effect through higher prices in more-exposed European markets. Sanctions against individuals with links to the regime in Russia and firms with Russian ownership could also affect the UK supply chain.
