The fresh volatility in materials prices is causing some contractors to think twice before entering fixed-price or long-term contracts.
The latest market report from materials producers and builders merchants’ trade bodies reveals that the fresh wave of energy price hikes are already being felt in construction.
It has prompted a joint task force monitoring materials, which has been set up by the Construction Products Association and Builder Merchants Federation, to step up the frequency of its meetings to every three weeks to respond to changing conditions arising from price inflation and the war in Ukraine.
Some manufacturers of energy-intensive products are now warning that surcharges will be slapped on products linked to surging energy costs.
The cost of energy is impacting manufacturers across Europe, with reports of cement plants in Spain closing due to the latest increases.
In the UK manufacturers report the supply picture remains broadly stable in terms of full production with good stocks and availability of most products.
But supply challenges continue to affect bricks, aircrete blocks, roof tiles, gas boilers, plastic drainage and other plastic products dependent on polymers, and some electrical products particularly those using semi-conductors.
Manufacturers are warning that while brick and block stocks have also increased slightly during the quieter winter month as the market accelerates in the spring it will be essential for builders to plan ahead and work with manufacturers to ensure timelines of availability.
The boiler market has been impacted by unprecedented demand coupled with supply chain challenges for steel, cardboard, plastics and electronic components.
While availability will remain constrained over the summer months,
