By Jordan Marshall2021-04-07T11:19:00+01:00
Number of products in high demand increases to include host of materials including screws, cement and steel
A shortage of construction materials such as timber, steel and screws is likely to get worse before it gets better with firms told to plan for increased demand and longer delays.
A joint statement from John Newcomb, chief executive of the Builders Merchants Federation, and Peter Caplehorn, chief executive of the Construction Products Association, warned demand for construction products both in the UK and globally meant problems in getting hold of products will be continue throughout the year.
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High global demand for products such as timber, steel and screws is expected to further exacerbate disruption with the UK construction supply chain, experts have warned
Disruption in the supply and availability of vital construction materials to the UK is expected to continue for the foreseeable future owing to a range of global challenges, according to the Construction Leadership Council (CLC).
A joint statement from both the Builders Merchants Federation and the Construction Products Association published by the CLC said that high demand around the world for building materials was exacerbating ongoing shortages and delays for goods such as timber, steel, cement and aggregates.
By Tom Lowe2021-03-17T14:59:00+00:00
PM also considering tax on building products firms to fund cladding remediation
The government is looking at new rules to exclude contractors that have engaged in “gross professional negligence” from public sector projects in the wake of shocking revelations from the Grenfell Inquiry, Boris Johnson has announced.
The prime minister said he would also look at proposals for a new tax on the building products industry to partly pay for the cost of cladding remediation on buildings containing dangerous cladding materials.
Johnson made the announcements during this afternoon’s session of prime minister’s questions in an answer to a question from Kensington MP Felicity Buchan, in whose constituency the ruined Grenfell Tower is located.
Timber industry resilient but Brexit brings trade friction, TTF survey reveals 2 March, 2021 SHARE Logistics is the most pressing challenge facing respondents, with a lack of haulage vehicles, inflated costs, and hauliers’ hesitancy to import and export goods in and out of the UK slowing down trade.
Difficulties with logistics, trade with Northern Ireland, and the time and cost to fill out customs and due diligence paperwork are adding pressure to an already tight timber supply chain, a survey by the Timber Trade Federation has found.
Logistics is the most pressing challenge facing respondents, with a lack of haulage vehicles, inflated costs, and hauliers’ hesitancy to import and export goods in and out of the UK slowing down trade.
Construction firms face disruption to their cashflow over the next three months as the long-planned reverse-charge VAT rules come into force.
From today, subcontractors will no longer receive VAT payments for their services, unless they are working directly for the end client. Instead, they will reverse charge it on invoices with only the main contractor actually collecting the VAT from the client to pay on to HMRC.
The new rules could see cashflows heavily affected over the next few months. DRS Bond Management director Chris Davies said: “From speaking with our clients, a typical contractor with around £100m revenue is expecting a cash hit of £2m to £3m.” He said this impact will have the biggest hit over the next two to three months.