Product supply chain and materials sales remain strong

Latest News Thu, Apr 24, 2025 5:56 AM

At present, the materials supply chain is functioning well and product availability is generally good, although several regions reported challenges with aircrete and insulation blocks and certain timber products, including CLS, carcassing and battens.

After a slow start to the year, construction materials sales have improved along with the weather, says the new Material Supply Chain Group statement.

However, performance has not been uniform across the country, with some regions experiencing stronger sales than others and retail sales, such as garden and landscaping products, driving activity in some areas.

The price increases anticipated in our March report have been implemented, with most within the range of 3-7%. A few exceptions were reported, with PIR insulation increasing by 10%, and anomalies in the pricing of CLS Timber due to global demand, and ironmongery.

It is too early to say if these are long-term trends. There are also reports of steel seeing early signs of price strain.

John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Material Supply Chain Group, said: “The United States’ 25% tariffs have immediately affected steel exports. Although steel dumping into the UK market hasn’t occurred yet, quotas are in place to stabilise prices and volumes. Another major development is the UK Government’s intervention to keep British Steel operational by taking control of the business and ensuring timely delivery of critical raw materials to maintain uninterrupted production and distribution.

“Elsewhere, changes in US tariffs have not yet had a significant impact on the construction products market, and it is uncertain whether they will have a direct effect. However, a major concern is that the economic uncertainty created by US policy may lead to volatility in prices, a decline in business and consumer investment and therefore impacts on new contract signings and existing fixed term contracts, which may have adverse consequences for UK performance.

“A further concern in the medium term is the likelihood of trade diversion due to US tariffs, which could impact the availability and price of products. For example, China may redirect exports from the US to Europe. While this could temporarily reduce prices, the primary concern is ensuring that imported materials, regardless of origin, are compliant and safe.

“Global shipping has also been disrupted, with ships either held in ports or diverted. While this is not having a direct effect yet, it remains on the Group’s watchlist. Lessons learned from the pandemic suggest that such major logistics developments can cause cost increases.

“In anticipation of market growth during the year, Group members urge the construction industry to work collaboratively with their supply chain to share the risk of potential market volatility, forecasting and communicating their requirements early with suppliers, distributors and builders’ merchants to assist in pricing, production planning and delivery.”




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