CLC reports prices are “flat or falling”

Construction Leadership Council’s first report of 2024 highlights that product availability remains good but prices remain flat or falling.

It reports that the easing of pressure on product availability has largely been driven by continuing reduced demand across the different regions and sectors of the UK market, with those supplying housebuilders being the most affected.

John Newcomb, CEO of the Builders Merchant Federation, and Peter Caplehorn, CEO of the Construction Products Association, co-chair the CLC. They said in a joint statement: “Any risks to product supply from the disruption in the Red Sea are yet to materialise, although the Group is monitoring the availability and cost of supplies from the Indian subcontinent and Asia such as decorative sandstone, plywood and sheet materials, hand tools, ironmongery and electrical goods.

“A longer sea journey of 10-15 days has led to delays in deliveries, so the main concern here relates to five-fold price increases stemming from increased shipping and container costs for these products.”

The Group has said it is also monitoring the supply of semi-conductors, which has been under pressure since the start of the pandemic. With four major design and manufacturing facilities in Israel, the conflict here has the potential to add further pressure on supply, and lead to increased prices.

They also stated: “Brick manufacturers have adjusted capacity to meet anticipated demand for 2024, while balancing stock levels.  They recommend that all customers plan ahead, placing forward orders to maintain supply.

“There is good availability of aggregates, cement and concrete, with demand not forecast to markedly improve until 2025 in spite of the current pipeline of infrastructure projects. There is also a plentiful supply of steel, but the supply chain here is under financial strain due to the downturn in demand.”