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As construction activity has surged in
2021, the availability of materials has become constrained. This has resulted
in lead times lengthening and costs rising. Construction News looks at the
latest developments for six key items.
Steel
Steel supplies have been limited since
2020, with the situation deteriorating in recent months. In May, British Steel
temporarily stopped taking orders on structural steel sections due to “extreme
demand”. The company has since resumed taking orders.
“Steel shortages are a global
phenomenon,” according to UK Steel head of policy and external affairs Richard
Warren. Talking to Construction News, he says they are being caused by
“increased demand in China, a reduction in Chinese exports and pent-up demand
elsewhere not bouncing back in the aftermath of COVID lockdowns”.
Shutdowns last year due to the
coronavirus pandemic has left some EU producers playing catchup, while others
are struggling to source the raw materials they need for steel.
The situation is expected to improve
soon, Warren says: “We anticipate the current situation of tight demand and
high prices will reduce during the second half of the year, as pent-up demand
starts to level off and all steel producers are back to full operation.”
Cement
Last month, Mineral Products Association
(MPA) chief executive Nigel Jackson said bagged cement was hit by shortages;
and then, at the start of June, Travis Perkins raised its prices by 15 per
cent. The easing of the most recent lockdown caused demand to rocket up,
Jackson said at the time.
Suppliers have struggled to keep up with
demand, with some taking facilities offline in the final quarter of 2020 to
carry out maintenance. Finding hauliers to transport cement has also been
difficult.
There is hope that the cement suppliers
will soon be able to respond to the high demand. A spokesperson for the MPA
tells Construction News: “Because the majority of cement is sourced and
manufactured here in the UK, we anticipate things will get resolved over the
summer.”
Timber
Timber, like steel, has seen high levels
of global demand and the situation is expected to get worse before it improves.
Timber Trade Federation (TTF) chief executive David Hopkins says: “It is
increasingly likely the third quarter will be the most challenging for timber
users in recent history.” Sawmill stocks in countries including Sweden, which
supply the bulk of UK softwood, are at their lowest in 20 years.
Timber is arriving pre-sold in the UK,
meaning companies are unable to build up stocks for future jobs. This is
further exacerbated by generally high demand for shipping containers, making
importing timber from areas such as Africa and southeast Asia more expensive.
Timber is likely to remain in short
supply for at least the rest of 2021, according to Hopkins.
Roof tiles
Around half the members of the National
Federation of Roofing Contractors (NFRC) have reported a shortage of concrete
roof tiles, according to the federation’s chief executive, James Talman: “Lead
times for concrete tiles are on average around 20 weeks but can be up to 36
weeks on some products,” he says, with lead times for clay tiles also rising to
between four and eight weeks.
“There has been a toxic mixture of
circumstances over the last six to 12 months that has resulted in the
unprecedented situation we find ourselves in today,” Talman says. The industry
is still playing catch up after much of the production of concrete tiles
stopped at the beginning of the first lockdown in 2020, while demand from both
the housing and domestic repair maintenance and improvement sectors has
exacerbated the situation.
Nine of 10 NFRC members have reported
price increases in the first quarter of 2021. Talman says supplies are expected
to remain constrained until at least early next year. “We do not think we are
over the worst of it yet,” he adds.
Plasterboard
Plasterboard has met “exceptional demand
across Europe”, according to Etex Building Performance head of marketing Andy
Mudie. The senior manager at the building materials provider said general high
levels of demand for paper and pulp had put supplies under pressure.
As with many other sectors, plasterboard
suppliers have pushed up their prices in response. “Whilst we try to absorb as
much as possible, some costs have to be passed on,” Mudie says.
Plastics
Rigid pipes and fittings, along with
plastics used in doors and windows have seen prices rise in recent months.
British Plastics Federation director Philip Law says polymer shortages are
“unprecedented” with problems sourcing raw materials, which has pushed up lead
times for items.
A number of factors have hit suppliers,
including some carrying out work on their factories, difficulty accessing
shipping containers, and import problems since the UK left the EU, Law says. “Businesses
are doing their best to adapt to these challenging conditions and to meet the
needs of their customers but the variety of factors influencing polymer supply
mean it is impossible to predict precisely when things will return to normal,”
he adds.