Material costs increase 23% in one year
The cost of building materials was nearly a quarter higher in August than a year ago, new government data has revealed.
Average material costs across the industry were 23.5% higher than in August 2020, according to the Department of Business, Energy and Industrial Strategy (BEIS). This is higher than the figure reported in July, when material costs were up about 20 percent year-over-year.
Both steel and lumber prices have soared during this period, with imported sawn or planed lumber costing 74% more than in August 2020, and manufactured stainless steel prices have jumped by 74.8% over the same period.
Wood has always been one of the materials facing the most severe shortages and price increases, and prices climbed 8.9% from July, while steel prices were 5.3% higher than they were the previous month.
Alasdair Reisner, Managing Director of the Civil Engineering Contractors Association (CECA), said Construction News the building and infrastructure markets are “both facing challenges in logistics, material sourcing and cost pressures”.
“CECA is actively working with the UK government, the Construction Leadership Council and other industry stakeholders to identify pinch points in the sourcing of materials and skills and, where possible, alleviate these pressures on our members. “, he added.
Consultants predicted that material shortages would push up bid prices on new work, with Turner & Townsend’s latest market intelligence report released last month suggesting bid prices could be 10% higher. hundred higher at the end of the year on certain types of work than they were at the end of 2020.
Last month, the Construction Leadership Council warned that the shortage of truck drivers was the industry’s “most common and urgent concern” and that it was exacerbating shortages of bagged cement, concrete tiles and bricks in particular.