The overall product availability picture has not changed this month,
according to the latest statement from the Construction Products Association
and Builders’ Merchants’ Federation.
Demand both in the UK and globally continues to dramatically outstrip supply
and shows few signs of slowing during the seasonally busy summer months.
In the UK, record sales of building materials coupled with strong pre-orders
and full pipelines of work are all putting enormous pressure on the supply
chain which, in some sectors, has not fully recovered from the impact of Covid.
This suggests the unprecedented challenges around a number of key product
areas, particularly imported products and materials, will likely persist into
the second half of 2021.
Timber, roof tiles and some steel products continue to be in short supply,
as is bagged cement which may have been impacted by some manufacturers
undertaking overdue preventative maintenance. Paints, sealants and
chemical products, continue to be affected by raw material shortages, with
paints additionally affected by a shortage of packaging, particularly metal
cans. The situation with insulation boards has also become tighter, with PIR
becoming harder to obtain and contractors actively seeking alternatives.
Plasterboard has been subject to extended lead times with one major
manufacturer indicating their products going on allocation. Some regions
are also reporting delayed deliveries of bricks and blocks.
“Electrical products have been affected by raw material shortages,
particularly steel products and semi-conductors, since Autumn 2020,” said the statement from John Newcomb, CEO of BMF and Peter
Caplehorn, CEO of CPA, co-chairs of the Construction Leadership Council’s
Product Availability working group.
“These issues are now compounded by the shipping backlog in China’s Pearl
River Delta, with hundreds of container ships waiting for berths to become
available. The Electrical Contractors Association and their Scottish
counterpart, SELECT, are warning that the blockage already surpasses that of
the Suez Canal earlier this year and is likely to lead to extended delays for
electro-technical products.
“The availability of hauliers is a particular issue raised within the group
over the past months and it is clear that this is now a critical nationwide
problem causing delays and impacting project programmes. The UK has lost
15,000 European drivers this year due to Brexit, and 30,000 UK driver tests due
to Covid, which has exacerbated the driver shortage. The CLC’s
Product Availability Group is supporting the Road Haulage Association in its
discussions with the Department for Transport to address the shortage.
“Inevitably, all of this is feeding into price inflation, and the
expectation is that high demand coupled with tight supply will sustain elevated
prices throughout the year.
“As we emphasised last month, forward planning and ongoing communication
throughout the supply chain is essential to assist with reliable delivery dates
and to manage expectations about any shortages or allocations.
“Allocation systems should be as transparent as possible, so all customers
can be seen to be treated fairly and provided with both the information and the
products they require to plan and complete projects in a timely manner.
“Builders and contractors should also maintain open communications with
their customers regarding lead times, possible product substitutions and early
notice of potential price increases.”
