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Thu September 16 2021

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Wood and steel drive materials prices to new heights

2 Sep The price of building materials has gone up by more than 20% in the past year overall, latest official statistics show.

The price of imported plywood has gone up by more than 80% in the past year
The price of imported plywood has gone up by more than 80% in the past year

Building materials prices rose 4.5% in July 2021 compared to the previous month and by 20.1% year-on-year.

The construction materials price index is at its highest point since current records began in 1996.

The materials showing the steepest price increases over the year were imported plywood (up 81.7%), fabricated structural steel (64.7%) and imported sawn or planed wood (64.2%).

In contrast, the price of screws has fallen by 14.1%.

The data is contained in Monthly Statistics of Building Materials and Components – August 2021, published by the Department for Business, Energy & Industrial Strategy.

Construction Material Price Indices, UK (Index: 2015 = 100)

Separately, a survey of UK construction subcontractors found that 58% are struggling with the cost and lack of availability of raw materials.

The latest Subcontracting Growth Report from Bibby Financial Services (BFS) found that 40% have looked for new raw material suppliers, 25% have secured new suppliers and 24% have renegotiated with existing suppliers. However, 46% have taken no action yet.

Labour shortages are also proving a challenge, with 44% describing labour shortages as the greatest threat to their business.

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MPU
MPU

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