CLC: Latest Material Supply Chain Group Statement

• Statement from 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.

As we leave the summer holiday period, the latest report from the Construction Leadership Council’s Material Supply Chain Group (formerly Product Availability Group) continues to show little change from preceding months.

Currently there are generally good levels of product availability across the board; though some merchants and housebuilders have flagged concerns around aerated blocks, Class B engineering bricks and concrete roof tiles where certain manufacturers have implemented allocations or 2-3 week lead times.  It appears that these shortages are tied to temporary production issues and may be exacerbated by over-ordering, but at any rate are not having a serious impact on build programmes at this time.  Also, in the case of aerated blocks, additional capacity is in the process of being brought back on by one major manufacturer that will positively impact supply and lead times from mid-October onwards.

Other concerns flagged at the most recent meeting of the group included:  containers costs for imported products, which appear to be rising again after a prolonged decline (some shipping routes are said to now be priced at two thirds of their post-Covid peak); an increase in bad debts; and continued challenges with skills shortages.

In addition, this group will be monitoring the impact of the Government’s ambitions to further reform the industry in the wake of the Grenfell Inquiry final report.  The recommendations from that report are currently being studied by some members of this group, the wider CLC and the Government itself, with the Prime Minister promising to respond within six months.

Coming a few days before the report’s publication, a recent Government announcement on extending recognition of CE marking for UK construction products manufacturers was welcomed for removing a key risk to future product availability.

Finally, as numerous industry forecasters have moved any notable growth prospects – particularly for housing activity – further into 2Q25, members of the group strongly advocate that industry uses this time to plan in advance, work closely with your supply chain, and forecast and communicate your requirements early with suppliers, distributors and builders’ merchants.  As we learned during the pandemic, collaborative, ongoing communication throughout the whole supply chain is mutually beneficial and essential to a healthy, productive UK construction industry.

https://www.mineralproducts.org/News/2024/release19.aspx

Source : CLC

Image : Pexels / nicholas lim / 3792575

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