Material Supply Challenges

The last few years have been challenging for us all, the construction industry, although very buoyant, has not escaped its own challenges. Covid, skilled labour shortages, freight, material shortages, demand and increases have all challenged the industry. It is estimated that in the last twelve months 60-80% of construction projects have seen on site delays due to material availability.

The outlook for material supply and pricing stability remains uncertain. Challenges with global supply chains continue to be the main catalyst for these pressures. Even when finished products are manufactured in the UK the majority will have raw materials that are sourced and supplied outside of the UK. Global post pandemic uncertainty together with the impact of Brexit have both been felt- cost and availability of shipping has significantly increased due to this.

Market demand has also had a positive impact. The construction industry endured the pandemic much better than most, where we also experienced a strong post pandemic bounce back, meaning construction output is currently very high. There is now a slight softening in the private DIY sector which saw huge demand over the covid lockdown period.

Regulation has also driven specific sector pressures, one example of this would be the move towards Non-combustible insulation in facades. This has significantly increased the demand in a specific product sector leading to extended lead-times. While previously this sector was serviced by multiple insulation types the choice and suitable insulant has narrowed dramatically.

Price increase frequency and levels have also been unprecedented, increase cost of materials, transport, labor and energy all significantly impacting on manufacturers. This has led to some manufacturers imposing Energy Surcharges with little notice. April will see average energy bills increase by 54%, energy intense production and products such as concrete, steel and cement passing on the impact of higher energy prices. The outlook seemingly to point towards further pressures in Q3 & Q4. With so much uncertainty there are now examples within the industry in certain sectors or quotes only being valid for 24 Hrs.

Galaxy Technical Services are positioned to try our best and assist with these challenges. We can review your existing specification and offer guidance on compliant, certified and critical to the above challenges with available products. We are able to review and give cost considered guidance coupled with confirmation of readily available stocked solutions.

For more information on how we can support please contact:

Justine Gray
By: Justine Gray
Apr 08 2022

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