Is Your Business Crumbling Due To A Lack Of Materials?
I’m sure you’ve read in the news in the last few days that Jewson's have warned that material prices will continue to rise because we are still experiencing a shortage. The building material shortage is one of many problems we, as an industry, have to deal with after the pandemic and Brexit. No one has come out of the last few years unaffected, and it’s likely to take us a while to get back on our feet.
I have written about this topic a few times. In the past, I hoped it would pass quickly, but unfortunately here I am again, because this is more relevant now than ever.
Jewson has announced they will have to continue to put up the prices of some of their goods. Timber, insulation, and even wheelbarrows are on the list. We have seen the cost of timber rise considerably recently, and it’s safe to say it doesn’t look like it has plateaued yet.
The disruption to supplies has caused havoc across our industry, projects have come to a standstill, and profits have been considerably lowered.
Jewson’s are not the only construction material suppliers to speak out about this crisis. Travis Perkins has also warned of shortages of timber and plasterboard, and B&Q has also spoken out on this issue. Even shops including Ikea and Argos have made reference to not being able to get hold of products.
But why is this happening?
Unfortunately, it's the mix of the pandemic, limited workers, and Brexit that affects the supply chain. It seems we, the consumers, face the brunt of the impact.
The Bank of England forecasts a rise in inflation this year of 4%. That's the highest inflation rate for 10 years.
What is being done?
It has been noted Hanson has said they are allocating cement to ensure that there is a reasonable supply. Jewson has also limited certain products to 'so many' per customer. I’m sure you’re aware this isn’t an ideal situation, you don’t need me to tell you that. We need to find a way out of this crisis, because we are slowly coming to a halt.
Supply and demand is a huge issue. If you’re needing more information on who is limiting what, you can go onto their websites. They have a note on there explaining what products are causing problems.
On top of this, we are still attempting to reach the government's deadline of 2050 net zero carbon emissions. We're supposed to hit this deadline, but how are we supposed to do it when we're also limited on supplies? I don’t want to say it’s impossible. I’m still hoping this will turn around, but any delays will have a massive impact on how quickly this can be done.
If you’re still looking for more info or updates, check out these links below. They might not solve your problems, but they might answer some of your questions.