Thu 17 / 06 / 21
The impact of Brexit on the supply chain for the Construction industry
Since the rules governing the new relationship between the EU and the UK took effect on 1st Jan 2021, there has been a soaring increase in the prices for goods and materials and shortages in essentials such as timber, steel and concrete.
This has meant that construction companies who price jobs in advance have been in the difficult position of either shouldering these costs, or having to increase prices of jobs.
A recent survey carried out by IHS Markit and the Chartered Institute of Purchasing Supply UK shows there has been a boom in the construction market during the pandemic, but input-cost inflation had increased for the seventh month in a row to its highest level since the survey began in 1997.
Here is a snapshot of some of the materials which are in short supply and have been subject to significant price surges:
- Timber – 80% price increase in the past 6 months
- Copper and Steel – 40% price increase
- Paints and Varnishes – 30% price increase
- Polymers such as polyethylene and polypropylene - 60% price increase
Find out more in our latest update from construction law Principal, Clare Reed, here: https://bit.ly/3q0NL7Y