Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
At present, the materials supply chain is functioning well and product availability is generally good, although several regions reported challenges with aircrete and insulation blocks and certain timber products, including CLS, carcassing and battens.
That’s according to a statement made by the 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.
After a slow start to the year, construction materials sales have improved along with the weather, although some regions are experiencing stronger sales than others, and retail sales, such as garden and landscaping products, are driving activity in some areas.
Price increases anticipated in the March report have been implemented, with most within the range of 3-7%, although PIR insulation increased by 10%, and there are also reports of steel seeing early signs of price strain.
The United States’ 25% tariffs have immediately affected steel exports. Although steel dumping into the UK market hasn’t occurred yet, quotas are in place to stabilise prices and volumes. Another major development is the UK Government’s intervention to keep British Steel operational by taking control of the business and ensuring timely delivery of critical raw materials to maintain uninterrupted production and distribution.
Aklthough changes in US tariffs have not yet had a significant impact on the construction products market, one major concern is that the economic uncertainty created by the US policy may lead to price volatility and a decline in business and consumer investment.
A further concern for the medium term is the likelihood of trade diversion due to US tariffs, which could see China redirecting exports from the US to Europe.
