Construction Materials Shortage: Rising Inflation Heavily Impacting Prices

30th May 2022

The construction materials shortage could worsen with price inflation set to be "the main story of 2022" for the sector.

The construction materials shortage continues to be blighted by surging inflation despite builders' merchants racking up record sales.

The Builders Merchants Federation (BMF) says the value of sales increased by 17.7% in the first quarter of 2022, compared to the same period in 2021. But as general inflation leapt up to 9% in May, almost all of this was driven by price increases - in comparison, volume rose by just 1.5%.

In its Builder Merchants Building Index (BMBI), the BMF indicates that demand for building materials remans high but stable, but also warns that price inflation is a critical issue, and the rate of increasing energy and raw material costs could impact those working on self build, renovation and extension projects.

"The supply chain was already facing uncertainty before the outbreak of war in Ukraine. The conflict can only exacerbate this. Continuing pressure on availability coupled with rising costs for raw materials, energy and labour suggests that price inflation will be the main story of 2022."

Read full details HERE