How sharply rising materials prices have rocked the sector | Construction News

And that is before factoring in regional variations and specific contracts that would have seen some contractors hit with eye-watering bills for the items they needed to deliver their projects.

Further obstacles were heaped on top, with unseasonal weather in Scandinavia affecting timber production and some of the world’s biggest timber mills closing for maintenance.

“With everyone at home, people wanted to do works to their home or build a home office.

This marked a big change in how this part of the industry generally works, but, despite it being accepted by most customers, it did not end companies’ struggles to mitigate shortages.

The CLC’s January update on product availability notes that while some material shortages have eased, major challenges exist elsewhere.

However, Caplehorn sees demand “levelling out in 2022, mainly because of the wider economy”.

Policy changes to allow people to move freely in sectors where there are shortages of materials could ease the situation, he adds.

Morgan Sindall chief executive John Morgan told CN in November that cost inflation had slowed the process of winning new work.

But he does not expect to see the same level of cost inflation this year.

“Perhaps look at productivity improvements such as digital working,” he suggests.

Many parts of the building trade could also look to the civils sector for tips.

Despite not believing that the industry has seen the back of the impact of COVID-19, Hudson offers some hope for the year ahead.

“Sadly, some companies have gone into liquidation because they’ve not managed their costs,” he says.

Meanwhile, Caplehorn points out that there are fresh challenges on the horizon for material suppliers in the form of decarbonisation and energy prices.

“As long as the pandemic is around, there is a risk of the materials crisis resurfacing,” says Caplehorn.

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