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Constructions Insight - Supply & Demand of Common Materials!

The Saint's Blog

The official consensus is products & supply are available, however, lead times and demand are at a high. Corporations are trying to bring in as much material as they can however are struggling to build a large enough stock to meet demands.

Cement

It seems hard to get bags of cement etc and companies like Wickes / Selco are dropping a pallet of cement off and it's going fast!

Suppliers say they are broadly back to normal on bulk deliveries (which is approx 80%) of all deliveries.
Bags are roughly 18.8% in shortages as they were in February and this is now due to things starting up and new demand.

They say they can meet demand and are past the worst effects of lockdown, ie plants shut and drivers.

Timber

We import 80% of our wood, so due to Covid with the addition of Brexit, plants and cutting has all been reduced.
We are seeing rise in price of approximately 16.6 % on sawn wood.

This will not cease demand as everything is really ramping up although they do not expect a shortage and should be able to match requirements just be prepared for European summer shutdowns or maintenance but I hope that doesn’t transpire.


Steels

There are problems here. Supply from British Steel etc have stopped taking orders. The electricians are being advised to pre-order to ensure completion of projects so a little warning there.

Fabricated steel is up approximately 17.6 % ( March 20 to March 21 )

Aggregates

They seem to be fine, busier than ever and no panicking bar HS2 making a dent. Drivers are very much in demand.


Plastic

The duct/pipes are low in stock and manufactures are okay on supply but not shy in raising prices. Don’t forget roofers can get caught here as well with poly products on roofs. Demand will be very healthy.

Trading Warning

The Government are looking to stop red diesel so that will impact on lots of Plant. We will watch this very closely, if you are buying, talk to Saint Tax and look at the benefits available for new plant and plan the next few years with this in mind. This will no doubt have a knock on effect to the larger operators who have to mine and excavate. I am not to confident if this will be as quick as the Government would like so we will as always stay one step ahead and let you know.

Additional Statistics

* Construction output grew by 5.8% in March 2021, because of growth in both new work (6.7%) and repair and maintenance (4.4%).


* Construction output in March 2021 was 2.4% (£334 million) above the February 2020 pre-pandemic level; repair and maintenance was 7.7% (£377 million) above this level, while new work was 0.5% (£44 million) below.


* Quarterly construction output grew by 2.6% in Quarter 1 (Jan to Mar) 2021 compared with Quarter 4 (Oct to Dec) 2020; this was driven by growth in both new work (2.8%) and repair and maintenance (2.2%).


* New orders increased by 12.2% (£1,227 million) in Quarter 1 2021 compared with Quarter 4 2020; this follows a fall of 7.8% (£848 million) in Quarter 4 2020 but was 13.3% lower than Quarter 1 2020.


* The annual rate of construction output price growth was 1.8% in March 2021.

I hope our insights have provided value to you, if you want to get notified with useful information such as this feel free to subscribe or join our newsletter!

This article was written for Saint Financial Group, a multidisciplinary group based in the UK that helps small businesses develop and grow. SaintFG offers a range of quality solutions in supporting businesses.

Saint provides the luxury of free business consultancy for of our clients, call now for your free consultation with a friendly business advisor to discuss your burning questions and put that energy back into your business!

SaintFG

Written by:

Stephen O'Rourke

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