FEATURE INDUSTRY SUPPLY
Long Term Market Pressures Demand for timber and construction products is at record highs both in the UK and globally, with reports suggesting that shortages are set to continue throughout 2021.
A
ddressing some of these
This is putting enormous pressure on the
concerns, John Newcomb, CEO
housebuilding supply chain, especially roofing
Builders Merchants Federation
contractors, in terms of what price increases
and Peter Caplehorn, CEO
they can absorb and what they have to pass on.”
Construction Products Association, who co-
Reflecting on Marley’s position in respect
chairs of CLC Product Availability work group
of its JB Red timber brand, the company’s
released a statement saying that the availability
roof systems director Stuart Nicholson said:
issues we are currently experiencing are likely
“The global/US pressure of increased demand
to worsen before they improve.
for timber has exacerbated the supply issues
“While supplies of plaster and plasterboard
caused by the pandemic and Brexit. Therefore,
are much improved on last year, almost every
it remains extremely challenging to secure the
other product group is experiencing longer lead
raw materials needed to produce and supply
times and, as a consequence, higher prices,” they
finished products.”
said. “Imports of timber will be an issue for the
SR Timber’s trading director Shaun Revill
foreseeable future. Not enough timber is being
says: “We’re in the very fortunate position
produced to meet world demand. Added to
of having our own dedicated sawmill in the
this, other countries are prepared to pay more
Baltics, which means we have our own robust
to secure their supply, pushing the UK lower
supply chain – but even that has been tested
down the pecking order. All users should plan for increased demand and longer delays, keep
to the limit recently with Brexit and Covid-19,
Image © SR Timber
and we are not insulated from what’s going
open lines of communication with their suppliers
on globally. We have been very proactive
and order early for future projects.”
and transparent with our customers and
The Office for National Statistics (ONS)
given them lots of information to explain the
also projected a rise of 7-8% in material prices
situation regarding stock availability – which
this year, with increases for timber, expected
currently has a lead time of around ten days –
to more than double. Travis Perkins – the
and price movements.”
UK’s biggest builders’ merchant also grabbed
James Talman, chief executive of the NFRC,
national headlines by warning customers of
said: “We are currently seeing unprecedented
‘considerable cost increases’ to raw materials
shortages of roofing materials, in particular
amid the industry-wide shortage. Speaking
timber. This is due to a whole host of different
to The Times, Travis Perkins said it had been
reasons, from Covid-19 restrictions to the
informing customers in its stores, websites and
impact of low US timber supplies. Our data
by email of the price rises, with the price of
shows that two-thirds of roofing contractors
bagged cement up by 15%, chipboard by 10%
saw material availability deteriorate in the first
and paint by 5% at its UK outlets.
quarter of the year, and 89% reported price
Leading voices from the UK roofing
rises. Timber battens were the second-highest
industry have also warned of ‘faltering
material shortage after roof tiles with a third
availability and rapidly rising costs of basic materials such as timber roofing battens.’ The
of contractors reporting shortages. Whilst our Image © SR Timber
supplier members are doing all they can to
National Federation of Roofing Contractors
alleviate shortages, it will still be some time
(NFRC), Avonside Group (including Avonside Roofing), Marley and SR
before we are back to steady levels of supply, and homebuilders therefore
Timber said global timber shortages have put the UK housebuilding
need to work collaboratively with roofing contractors to plan ahead, build
industry’s supply chain under enormous pressure with extremely low
in lead times, factor in price rises and ensure flexibility in contracts.”
available stocks of European softwood
It is now critical that everyone in the supply chain – customers,
For roofing contractors, the biggest impacts are on cost and
merchants and suppliers – to be planning material purchasing and supplies
productivity. Delays in supplies of materials such as batten present a real
further and further in advance. This way everyone can better meet the
and serious risk to housebuilders’ production schedules, the financial
forecasted timber volumes and increasing industry demands to reduce the
impact of which can be severe. Avonside Group’s CEO Eddie Stanton said:
stress on building completion and market pressures across the UK.
“The price of roofing batten is rising on a monthly basis, already in excess More at www.constructionproducts.org.uk www.nfrc.co.uk
of 50% over the past six months, and supply lead times are getting longer.
Timber Trader UK Magazine
Summer 2021
14
www.timbermedia.co.uk
@Timber_Media
