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:
Rate of inflation reducing, but costs are still going up warns FIS
The Building Cost Information Service (BCIS) has reported at the start of November that construction materials prices for all work fell by 1.8% in the 12 months to September 2023, according to new figures from the Department for Business and Trade. This was a smaller...
Government survey of critical supply chains
The Department for Business and Trade is asking FIS Product Supplier members to respond to a short survey which is being conducted by their Global Supply Chains and Economic Security Directorate to identify businesses’ experiences of managing their critical supply...
CLC Latest: Construction Product Availability Statement
Statement from John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Product Availability working group. Further to last month’s statement, once...