Recent reports of increased pricing in construction goods have left many home renovators in hot water. With so many people working on home and garden renovations throughout the pandemic, now people are faced with sky-rocketing prices.
Of course, trading standards are very important to adhere to and, despite price changes, builders and suppliers are working towards these standards. That said, that doesn’t mean these price increases aren’t making things tricky for those currently in the industry.
Whether it be timber or labour costs, there’s plenty that is being affected. In this article, we’ll be exploring the reasons for this, which goods have been affected, and how this is likely to affect people. Take a look…
How Recent Events Have Led to a Rise in Trade Prices
Supplies for various goods required in the construction industry are dwindling, which naturally means that prices have risen. It’s predicted that these prices will continue to rise throughout the year.
So, before we take a look at which materials have been most affected by price changes, the question really lies in why this is happening.
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Brexit and Trading Prices
Around 60 percent of materials used in the UK construction industry are outsourced from the EU. Although the Brexit deal has aimed to maintain these trade links, Brexit has led to lengthier supply chains for a number of key supplies. This means that materials are taking far longer to get from A to B.
One of the most prominent examples of where this has affected supply chains has been in the timber sector. Between 80 and 90 percent of the UK’s timber supplies come from the EU. According to the Timber Trade Federation (TTF), the complications caused by Brexit have caused these supplies to drop off.
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COVID-19 Causing Raw Material Shortages
It’s not just Brexit that is causing supply shortages; COVID-19 has also caused a global shortage in raw materials. This includes paints, adhesives, insulation, and more, and has been caused by a number of reasons, including:
- Closures of factories due to lockdowns.
- Labourers being told to isolate at home.
- Showrooms being closed.
- Global demand being extremely high due to lockdown renovations.
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Labour Shortages Due to COVID-19 and Brexit
It’s not just raw materials that have been stretched to breaking point due to COVID-19, but manpower too. The need for labourers is completely outweighing the supply, and this isn’t helped by the need for people to self-isolate when called upon. What’s more, many traders have put up their prices due to being overwhelmed with work.
This has been compounded by the fact that many Eastern European workers, who would normally work on the fields, have left the country post-Brexit. The south-east has been hit particularly badly by this change.
Ultimately, the demand for construction workers is simply far too high considering the supply. The Office for National Statistics (ONS) have calculated that construction sector employment has fallen from 2.3 million in 2017 to 2.1 million by the end of 2020. Considering the rise in reno projects during this time, it’s clear to see that there’s an imbalance here.
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Which Building Materials Have Increased in Price?
Now we know why the construction industry and trade has been affected so badly by recent historical events, which products can we expect to see a price hike for? Well, there are plenty where that came from, including:
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Cement:
bagged cement supplies have been strained since 2020, but it’s thought that this may be eased soon.
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Electrics:
a shortage of raw materials has led to electrical supplies becoming lower.
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Paints, coatings, and sealants:
a global shortage supply, as well as the cost of shipping containers, has led to this.
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Plaster and plasterboard:
a severe shortage early on in 2021 means that lead times are set to remain extended for the foreseeable.
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Roof tiles:
concrete roof tiles are in short supply, leading to a wait-time of around 20 to 36 weeks, compared to a delay of just four to eight weeks for clay tiles.
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Steel:
globally, steel is under high demand due to a dramatic reduction in steel production from COVID precautions. The shortage is set to remain low until the end of the year.
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Timber:
a nationwide shortage has been reported since March 2020, coinciding with the first national lockdown. It saw veneers, MDF and solid wood being affected the most.
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Other:
alongside these main supplies, there’s also reportedly a shortage in insulation, concrete, screws, plumbing materials, bricks, blocks, plastics, and more.
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How Are Rising Trade Prices Affecting People?
The rising prices for the materials listed above means a number of things for a number of different people.
For starters, construction workers and contractors are extremely strained in terms of workload. Of course, this means they’re potentially making a huge amount of money, but they’re also having to work weekends and long hours. This is likely to have a knock-on impact on life outside of work for these labourers.
What’s more, unsuspecting home renovators are being hit hard by higher costs than ever before for what should be deemed basic materials. This will particularly affect those working on self-builds, as steel or timber frames are necessary, alongside insulation, concrete and more. Without these, houses may be left unfinished.
other related articles of interest:
3 Reasons To Check Building Materials Before You Use Them
How to Negotiate Material Costs in Home Building Early in the Process
What Does the Future of Trade Look Like for 2022?
As you can see, COVID-19 and Brexit have led to many issues for those in the construction industry. It’s also led to many problems for those renovating their homes and gardens throughout this strange time.
It’s unclear when these prices will become back to normal again. Unfortunately, only time will tell.
Do you have any predictions for when trading in the UK will get back to normal? Be sure to leave your thoughts in the comments down below.
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