Co-chaired by BMF CEO John Newcomb and Construction Products Association CEO Peter Caplehorn, the Construction Leadership Council’s Material Supply Chain Group’s latest report “continues to show good levels of product availability as we move into the final quarter of the year.”
Formerly known as the Product Availability Group, the statement from the Material Supply Chain Group is as follows:
Most regions reported stronger sales prompted by a slight increase in house building activity. This has raised demand for bricks and roof tiles, but their supply has not been unduly impacted, and there are generally good levels of availability across the board. Previously reported issues regarding aerated blocks are being managed by allocated supply. This is likely to continue until the end of the year as manufacturers rebuild stocks.
“The Group is undertaking research to establish capacity amongst UK producers and assess how quickly this could be increased to accommodate the level of demand required to achieve 300,000 new homes a year.”
(With the report compiled) in the week before the new Chancellor’s first Budget, the main concerns flagged by the Group centred on the potential impact of the government’s ambitions for new housing and infrastructure when, over the past 18 months, manufacturers have adjusted capacity to match far lower levels of demand.
This includes construction products manufactured in the UK but also materials, such as structural timber, which are predominantly sourced from European suppliers, and are subject to demand from many countries, not just the UK. Demand world-wide has declined in the last two years leading to the closure of older facilities, the loss of skilled labour, and very low stock levels.
This may be problematic if there is a rapid surge in demand for construction products as we progress through 2025. Understanding the complexity of the construction materials supply chain and the limitations this presents, will be essential to the successful planning and implementation of the government’s plans for growth.
“Members of the group strongly advocate that industry uses this time to plan in advance, work closely with your supply chain, and forecast and communicate your requirements early with suppliers, distributors and builders’ merchants.”
The Group is undertaking research to establish capacity amongst UK producers and assess how quickly this could be increased to accommodate the level of demand required to achieve 300,000 new homes a year. The Group also recognises the global nature of the full construction supply chain, which is more difficult to assess.
Despite these concerns, the latest industry forecasts expect any notable growth prospects, particularly for housing activity, to occur in the second half of 2025. Having noted the complexity and length of the material supply chain, members of the group strongly advocate that industry uses this time to plan in advance, work closely with your supply chain, and forecast and communicate your requirements early with suppliers, distributors and builders’ merchants.
Collaborative, ongoing communication throughout the whole supply chain is mutually beneficial and essential to a healthy, productive UK construction industry.
