Currently, the materials supply chain is functioning effectively, and product availability remains generally good. However, some regions have reported difficulties with aircrete and insulation blocks, as well as specific timber products, including CLS, carcassing, and battens.
This information comes from a statement issued by the co-chairs of the Construction Leadership Council’s Material Supply Chain Group, John Newcomb, CEO of the Builders Merchants Federation, and Peter Caplehorn, CEO of the Construction Products Association.
Following a slow start to the year, sales of construction materials have improved alongside the weather. However, some regions are experiencing higher sales than others, with retail sales, including garden and landscaping products, driving activity in certain areas.
Price increases forecasted in the March report have been implemented, with most rising by 3-7%. PIR insulation saw a 10% increase, and early signs of price pressure are emerging in the steel sector.
The 25% tariffs imposed by the United States have had an immediate impact on steel exports. While steel dumping into the UK market has not yet occurred, quotas are in place to stabilise prices and volumes. Another significant development is the UK Government’s intervention to keep British Steel operational by taking control of the company and securing timely delivery of essential raw materials to maintain uninterrupted production and distribution.
While the changes in US tariffs have not yet had a substantial impact on the construction products market, one major concern is that the economic uncertainty stemming from the US policy may lead to price volatility and a reduction in business and consumer investment.
Looking ahead, another concern is the likelihood of trade diversion resulting from the US tariffs, potentially causing China to redirect its exports from the US to Europe.
