31 Dec 2021 – Materials Mattered for Tradespeople

There’s not much to say about COVID-hit 2021that hasn’t already been said, but here we take a look at how some tradespeople, particularly in the building and renovation sectors, have been affected by pandemic-related issues.

Tradespeople and supply chain problems

Supply chain issues caused material shortages for many tradespeople, especially in the construction sector, and this in turn fuelled price increases. A recent update by the co-chairs of the Construction Leadership Council’s Product Availability working group, said that while the supply situation had eased a little in December, it was expected that the situation would deteriorate once again in early 2022, with longer lead times and further price increases expected.

Sole traders and SME builders have been particularly hard hit by shortages and are likely to find budgeting issues continue to be a problem as uncertainty about delivery and price of essential materials continues. In a world where domestic clients want certainty about price and project fulfilment dates before going ahead with a job, the issues of not being able to get hold of simple materials such as bricks, blocks and timber creates daily difficulties.

UK production of some goods and materials has, like many other sectors, been adversely affected by the Omicron variant outbreak. Manufacturers have been unable to keep up with demand as the domestic building repair, maintenance and improvement sector has remained buoyant throughout the pandemic.

The forecast for 2022

Below are some of the major issues in the supply chain:

• Bricks and blocks – UK production shortfall may mean imports will be needed to meet the current UK shortfall.
• Cement – while supply is not yet an issue, merchants are warning that the energy price increases could soon lead to sharp price hikes for cement products.
• Roof tiles – demand is high with lead times as long as 24 weeks for some products.
• Timber – while prices rose sharply in 2021, supply levels have returned to a more normal pattern. However, continued congestion at Scandinavian and UK ports mean that delays and price increases could soon be apparent in early 2022.

Pressures on global shipping, but logistics firms report progress

Delays and unstable pricing for building materials could continue well into 2022 as a result of ongoing disruption in China where the ‘zero’ policy on Covid-19 outbreaks is causing uncertainty in the shipping sector.

Problems at Felixstowe led some major shipping lines to divert vessels from Asia to other, smaller ports in the UK, again causing disruption, delay and end-price volatility.

However, the logistics industry welcomed government-created training opportunities and grants to help improve the numbers of HGV drivers on the roads. And as driver wages increased alongside greater flexibility in working conditions, it is hoped the sector will become more attractive and driver shortages will cease to be an issue in 2022.

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