Spec Finish

Materials www.thefis.org 27 the worse-case scenario could mean to your business if prices drifted or sourcing issues beyond your control delay the programme.” Read the letter at www.tinyurl. com/2sh2rdfx Collaboration and communication John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chair the CLC’s Product Availability working group that was set up in April this year. They released a statement in July which stated that with full order books, the current level of active demand across the entire construction industry will continue to put increasing pressure on the product supply chain. In general, products are available but lead times have lengthened, the report said. Current demand is making it difficult for manufacturers and suppliers to build up stock levels. One of the worst affected product areas identified in the statement was timber but on 22 July, the Timber Trade Federation issued a joint market statement from the Confederation of Timber Industries (CTI) and Swedish Wood, pointing to a likely easing of supply tension in the timber market as the pandemic eases. (Read the full report at www.tinyurl.com/46fzkccu ) By partnering with Swedish Wood, who represent the largest exporters of structural softwood to the UK, the CTI is seeking to provide a complete picture from forest through to end users. Drawing on data cited in the report, the market statement revealed that record amounts of softwood are being imported. The report also found that even though demand growing this quickly amidst a global pandemic has given little time to recover, or ramp up production, it is highly likely the timber market will soon stabilise. Raw material shortages, stemming from global demand and other external factors such as factory closures outside the UK, continue to constrain production of PE and PP plastics, PIR insulation, paints, adhesives and other coatings, and also packaging for other product groups. Global demand also continues to impact prices and delivery times on structural steel, internal steel products and galvanised steel. The CLC’s key advice is to plan in advance, work closely with your supply chain and communicate your requirements early with suppliers, distributors and builders merchants. Collaborative, ongoing communication throughout the whole supply chain is essential. The Product Availability Group is also exploring further solutions to alleviate other bottlenecks in the supply chain such as logistics and transport, including the ability to accept deliveries outside of normal opening hours. Material price inflation drives tender forecast increase Significant changes in material price inflation have resulted in an upgrade to tender forecasts, with Mace’s Q2 2021 UK Market View also revealing how the drive for sustainability and net zero carbon has the potential to affect tender prices in the long-term. After predicting that tender prices would drop in the Q4 2020 report, the current Market View suggests that tender prices will grow nationally by 1.5% this year, before peaking at 3.5% in 2023. After this, prices will ease in line with the economy, coming down to 2.5% in 2024. Read the report at www.macegroup. com/perspectives/210620-market- view-q2-2021 Industry discussion A webinar in July, hosted by Richard Waterhouse from NBS, addressed the impact of the construction materials shortage and an expert panel looked for ways to manage the barriers this is creating, especially for manufacturers and specifiers. This could have been a bit of a depressing listen, we all know where we are with this but Iain MciIwee, FIS Chief Executive, Charmaine Dean, Marketing Manager at Catnic, George Mokhtar, Director and Technology Business Lead at Turner & Townsend, and Lee Jones, Head of Manufacturer Solutions at NBS, took a considered approach to the problem to offer a glimmer of light on the horizon. No one will be surprised to learn that the panel agreed unanimously that early collaboration throughout the ENTIRE supply chain is a given, but there are other ways to maintain a level of sanity and a better chance of steady delivery of materials to site. Driving the shortages is the high volumes of work in the construction pipeline. The speed that is has come back has caught everyone on the hop, the pandemic (and ‘pingdemic’) impacted logistics, then the blockage in the Suez Canal earlier this year, Brexit and weather conditions all combined to create a perfect storm. Added to that, it is human nature to hoard at the time of threatened shortages (Paracetamol or loo rolls anyone?) and the skills shortage seems like the final nail in the coffin, but, as Lee Jones said, it may get to the stage where we have to consider rationing, partly because the manufacturing workforce is also declining, he said: “We may just have to ride the storm.” Charmaine Dean confirmed that some manufacturers are already putting their customers on allocation. George Mokhtar suggested that the best we can do is control what is controllable, he said: “We should perhaps re-think the way we procure and work up a design that is suitable for what is available. We should also consider the way we design – off-site construction may even up supply, he said: “We must think strategically to ensure a sustainable future of supply.” Some solutions The motto is ‘be prepared’. The panel agreed that one solution is a digitised design process that will lead to earlier and more efficient planning, which, in turn, leads to procurement with certainty and earlier engagement of the supply chain. Here is the link to watch the recording of the webinar: https://attendee.gotowebinar.com/register/5341225594095062539