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:
Sustained growth but material inflation and supply concerns soar
The latest CPA survey of the supply chain showed that the construction industry remained in expansion mode during the second quarter of 2021. Construction product manufacturers reported the fourth consecutive quarterly rise in product sales, whilst SME building...
Final transition for UKCA Marking delayed
It has been confirmed that the final transition to UKCA Marking from CE Marking will be delayed by 12 months allowing time for legislation to pass through Parliament, industry to prepare for change and the newly formed UK Approved Bodies to put in place the necessary...
Panel discussion: UK construction materials shortage
Yesterday, Richard Waterhouse from NBS hosted a panel discussion with industry experts on the UK construction materials shortage. Due to a global rise in demand and a tight supply of construction materials, the shortage of construction materials in the UK continues to...