Building material prices increased by 16% in the first quarter compared to the previous year
The construction industry is facing a “perfect storm” due to inflationary pressures in material prices combined with logistics issues and staff shortages.
According to the national trade body’s latest Builders Merchant Building Index, the Builders Merchant Federation (BMF) increased material prices by 16% during the first quarter of the year and 17.7% during the period compared to the value of sales across the UK. increased by. Last year there was an increasing likelihood of product shortages due to supply issues.
According to the survey, heavy construction materials including bricks, blocks and cement grew by 17.4% against a 5% increase in sales volume. Timber and joinery grew 21.4%, but sales volume fell 11.3%. The sales volume of landscaping products saw a decline of 3.5% against an inflationary growth of 14.4%.
BMF CEO John Newcomb said: “We had a perfect storm of Covid, Brexit and now Ukraine, and on top of that we now have the threat of rail strikes. It’s literally like one crisis to another.
“Inflation is certainly the biggest issue now, but with labor that is slowly emerging as the next problem.”
According to Newcomb, a UK-wide train strike currently being called by the union by the RMT will also have a serious impact on the supply of construction materials.
He said: “Industry is a very important part of the economy, it accounts for 9% of GDP and we only employ over three million people in the construction industry. If construction gets cold, the economy will get flu. It happens. “
Brian Berry, CEO of the Federation of Master Builders, said: “The inflation rate of 16% for raw materials will make things even more difficult for small and medium-sized construction companies.
“The government needs to acknowledge the problem of these supply chain pressures to help more consumers become aware of the pressures facing local builders and the impact on construction costs.”
Credit: www.standard.co.uk /