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:
Inflation continues to squeeze supply chain
Inflation has hit the headlines this week with figures not seen since the early 1990s reported by the Bank of England. Against this backdrop Iain McIlwee, CEO at the Finishes and Interiors Sector (FIS) reveals new data from the FIS that raises concerns over the...
FIS Statement: Shortages in the finishes and interiors sector, the what, why, when and how?
Latest update 30th March The year started with concerns around labour, which endure, but it is the material shortages of 2021 are starting to give way to energy related concerns linked to the escalation of tragic events in Ukraine. Key areas impacting FIS members are...
Government announces measures to ease risk of shortages
The Government has announced a package of measures to tackle the shortage of HGV drivers, which is causing widespread disruption across supply chains. It includes training 4,000 new drivers, offering 5,000 temporary visas for HGV drivers in the run up to Christmas,...