Over the past year alone, the price of construction materials has risen dramatically, whilst the supply itself has dropped massively.
This shortage is expected to continue well into the summer months and beyond. Though the demand for construction work has surged since the first lockdown – the fastest rate in almost 7 years – the supply chains have been unable to keep up with the pace of demand, meaning their delivery times have been extended.
Why are supplies so low?
With the combined impact of the pandemic and Brexit, the shortage can be linked with the increase of building and home improvement projects that took place in 2020. In turn, this led to a slowdown in the manufacturing of materials from factories in the EU, and many supply chains still remain stretched.
Particularly during the first lockdown in March, the need for supplies has been inflated, but there has been a nationwide shortage of essential materials – to name a few – timber, steel, cement, concrete, paint, plaster, plasterboard… and even electrical components! Though many of these shortages have since been improved, for many it could last until (at least) the end of the year.
Initially stemming from global demand, the changes to the customs rules (following the new Brexit regulations) have meant that imports have been slowed. A contributing factor to this is: border officials now need to cover trade between the EU and UK; thus, putting more pressure on the prices and henceforth, creating more shortages.
This ongoing issue has, evidently, caused quite an impact for many builders, renovators and home improvers; the demand is making it harder for manufacturers and suppliers to build up their stock.
Why are prices so high?
In short, prices have increased due to the growth of lead time. The pandemic made for a much higher demand, and mixed with a low-capacity issue, prices naturally began to rise.
The apparent popularity of DIY over the course of the pandemic, triggered a widespread price increase of over 10%. According to Noble Francis, economics director, the price of timber has increased in the past 6 months by over 80%, and copper and steel have gone up by 40%.
Compared to one year prior, the average price of building materials have increased by, just under, 8%.
It has been said that, until demand has decreased, or suppliers have been able to match their production with the rate of demand, prices will continue to stay high.
Where have all our materials gone?
Technically, the supplies haven’t ‘gone’ anywhere. As mentioned before, the long-awaited introduction of Brexit has now meant that receiving supplies is taking longer than it would have in the past.
Mixing that with the excessive increase in demand, all the usual supplies have sold so quickly that companies are working harder than ever to produce supplies as fast as they can.
So, what should you be expecting now?
There are high hopes that the prices of building materials will eventually decrease in 2022 and return to their original price by 2023.
Until then, if you need your building fix, there is an abundance of creative alternatives to traditional supplies – for some, the environmental advantages and structural benefits are huge!
1. Hemp
2. Bamboo
3. Wood composites
4. Plastic wood
5. Soy
6. Cork
If you’re in need of assistance for any commercial or residential projects, we would love to hear from you! Give us a call today to find out more about what we can do for you.