The latest report from the Construction Leadership Council’s Material Supply Chain Group (formerly the Product Availability Group and co-chaired by BMF CEO John Newcomb and Peter Caplehorn, CEO of the Construction Products Association) “shows little change from preceding months” as we head into the summer holiday period.
Meeting in the wake of the King’s Speech, the group welcomed the new government’s planning reforms, but wants to see further details and specific plans to boost housing and construction and stimulate key sectors of the industry.
It notes that there are “currently good levels of product availability across the board,” but cautions this is a direct result of demand remaining subdued across most sectors with the report stating: “It is difficult to see the market improving before the turn of the year, and suppliers have adjusted capacity to meet current demand.”
Looking ahead, some members of the group “expressed concern over suppliers’ ability to quickly increase output to meet any potential spike in demand.” As stated in its last report (June 2024), the key to this is accurate forward forecasts and longer lead ordering times with the CLC outlining that “manufacturers can ramp up production in 2-3 months but require forward knowledge of orders to do so.”
Concerns were also expressed about a shortage of labour, “particularly in areas requiring new skills, such as the installation of heat pumps.” The effect of these shortages are likely to be further exacerbated when construction activity increases.
The CLC also explained that it will be campaigning for joint engagement with government with the group wanting to have “round table discussions with ministers, to identify touch points with government that need addressing, in order to plan effectively for the future.”
In conclusion, the report highlighted the CLC’s continuing advice to everyone involved, particularly housebuilders and SME contractors, which is to “plan in advance, work closely with your supply chain and communicate your requirements early with suppliers, distributors and builders’ merchants.”
It added: “As we learned during the pandemic, collaborative, ongoing communication throughout the whole supply chain is mutually beneficial and essential to a healthy, productive UK construction industry.”
The full statement can be viewed on the CLC website here.
