Preparation for supply issues & price changes
Preparation For Supply and Price Changes
James baker - Senior Sales Executive
The past couple of years has been a challenge for construction as a whole. Supply issues have prevented many projects from completing and prices have increased. 2023 will see improvement in both supply and reduced pricing. Nevertheless, it is important that you remain vigilant and prepared for what could be around the corner.
Russia and Ukraine
The war in Ukraine had a massive impact on both prices and supply, with timber, bricks, and steel seeing some of the highest increases. Russia is a major supplier of these key materials, but sanctions placed on them by the UK and EU have massively disrupted the flow of material. Russian-owned Rusal is one of the world’s largest aluminium producers, meaning that global aluminium supplies have been directly disrupted.
The effects of the war on construction in the UK have reduced slightly, but with the ever-changing situation, you must factor in delays and supply issues to your projects. Ordering materials well in advance will help lessen the blow from supply issues, but you will still need to factor in storage.
The effects of Brexit
Brexit has had a major impact on the price of building materials in the UK. After the UK voted to leave the European Union in 2016, the British Pound weakened significantly against major currencies. This has resulted in higher prices for imported raw materials, as the cost of buying them in foreign currencies has increased. Additionally, the UK’s withdrawal from the EU’s common trading bloc has resulted in the imposition of tariffs on some building materials, further driving up prices.
However, the industry has now had some time to adapt to some of the new regulations meaning delays and supply issues have reduced quite significantly since the initial panic.
The construction industry is now able to source materials at lower rates than last year.
Unlike the situation in Ukraine, changes to the Brexit deal seem to be unlikely. The new changes that we have experienced are not likely to get worse, but improve, as we learn ways of streamlining processes that are causing problems with importing materials.
The importance of anticipation
With things looking much more promising in 2023 than in the previous few years, it is still important to expect the unexpected.
As we know from the last few years, the world is becoming increasingly unpredictable, and it is important to get prepared. When price increases or supply issues arise, they can cause delays, cost overruns, and even safety hazards. For example, we are expecting to still see price increases on cavity insulation and PIR boards as the cost of production is still at an all time high.
It is therefore essential for contractors to plan and anticipate potential supply issues. Understanding the supply chain and proactively engaging with your suppliers can help ensure that the necessary materials are available when they are needed.
Here at Wainwright Direct, we provide constant updates to all our clients about any delays to delivery or supply issues affecting their orders. We will always look to provide alternatives if supply issues mean you cannot get the materials you need. If you would like to know more about our process, get in touch with the team today:
Phone – 01494 863 872
Email – email@example.com
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