Material Shortages & Inflation
In recent times the sector has facing unprecedented material shortages and inflation in a number of areas (including gypsum products, steel, fixings, insulation, sealants and adhesives and timber).
Geopolitical events have manifested as a number of intense supply issues over the past 5 years resulting in periods of rapid inflation and shortage. FIS is urging the supply chain to heed the advice of the Construction Leadership Council with regard to managing the risk of price movements.
This is a issue for the entire supply chain, but specialist contractors remain under pressure to acceot to a fixed price contracts that are not designed to cope with inflation at current levels. This situation is unacceptable, we need to be working together, alert and reactive to the challenges on the ground and focussed on the very real risks of undermining specifications, warranties and even compliance and, at the same time, destroying businesses in our rush to get the job done.
You can access the latest FIS guidance on managing Material Shortages and Inflation (which provides a backdrop and links to available price index sources) here.
Latest updates:
CLC Statement: Update on CLC work in relation to impact on UK Construction of planned Steel Tariffs and Quotas
As the 1 July implementation date for the Government planned steel tariffs and quotas approaches evidence from across the sector is raising concerns that the combined impact of the planned tariffs and quotas—compounded by ongoing cost pressures from the Iran...
Steel Trade Measures Announced: What It Means for FIS Members
FIS is highlighting important changes to UK steel import rules, alongside wider global pressures that continue to drive cost volatility across construction supply chains. Members pricing work, particularly on fixed-price contracts, should take note of the potential...
FIS Focus: Vital Information on Inflation and Product Availability
FIS Position and Support on Inflation and Material Shortages Professor Noble Francis has added his view on Middle Eastern Conflict and Potential Effects to his economic updates which are updated weekly and available to FIS members via this link (by virtue of FIS's...