Materials shortages slowing the recovery

Build UK is flagging up a slight decline in activity in the construction sector. The latest information from Builders’ Conference shows that both the number and value of contracts awarded in April decreased for the first time this year. There were 548 contracts worth £5.7 billion, which has dropped below the monthly average of £6.0 billion in the year prior to coronavirus for the first time since December. 40% of all the contracts awarded by value were housing (£2.3 billion), with road projects making up 13% (£949 million) and office projects 10% (£581 million).

The industry will be hoping that this was a blip in the road due to the Easter break and that the continued easing of coronavirus restrictions over the coming weeks will drive the economic recovery and see construction activity increase again.

However recent industry surveys have confirmed that materials shortages are now a major concern for the construction industry. According to media reports, a survey conducted by the Roya Institute of Chartered Surveyors found that, while respondents were reporting rising workloads, headed up by strong housebuilding activity, nonetheless up to 57% believed that materials shortages were the main obstacle to a stronger recovery.

Meanwhile the CLC Product Availability Group has issued an updated statement on the availability of construction products. This confirms that ‘in general, products are available but lead times have lengthened’. The worst affected products continue to be timber, roof tiles and roofing membranes.