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:
Price inflation: we all need to play our part
A statement from Build UK Chair Paul Cossell As an industry, we are currently facing inflationary pressures not seen in the UK for 40 years. The latest update from the CLC Product Availability Group confirmed that average inflation for products and materials this year...
Mitigating the impact of inflation
The latest statement from the CLC Product Availability Group confirms that average inflation for products and materials so far this year has been around 23% with further increases to come, particularly for energy intensive products. Cost escalation is now the key...
Product availability is improving and demand is expected to remain positive into the second half of 2022
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 In general, product availability is...