Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
The challenges facing the UK construction industry show no signs of easing, according to the latest Material Supply Chain Group statement, released by the Construction leadership council (CLC)
The statement, written by co-chairs of the Construction Leadership Council’s Material Supply Chain Group John Newcomb (CEO of the Builders Merchants Federation) and Peter Caplehorn (CEO of the Construction Products Association) claims that while demand remains low, the main risk comes from rising energy and fuel costs that are driving up prices.
The group explains: “As costs are passed along the supply chain, profit margins will be squeezed at every level. Such pressure then increases the contracting tiers of the supply chain, with SMEs being particularly vulnerable. The stability of supply-chain finances is, therefore, fast becoming an urgent issue that this Group is monitoring.
“In the face of such challenges and uncertainty, members of the Group strongly advocate that now more than ever, the industry should use this time to plan, work collaboratively, and share forecasts and requirements early with everyone involved. Clear communication across the industry during these times is not only mutually beneficial but also vital for successful projects and a healthy, productive UK construction sector.”
The full statement is available on the CLC website
