Materials cost rises pose growing threat to contractors

Grant Prior 7 years ago
Share

Two thirds of main contractors are reporting problems with materials price rises following the crash in Sterling in the wake of the Brexit vote.

The growing threat is highlighted in the latest Construction Product Association’s trade survey.

It shows overall costs increased for 59% of civil engineering contractors while 66% of main contractors reported raw materials costs rose in Q3 compared with the previous quarter.

Skills shortages continue to push up wage costs as 54% of main contractors reported difficulties recruiting bricklayers, 47% for carpenters and 43% for plasterers.

Workloads are holding up well with the survey reporting a 14th quarter of consecutive growth with output rising in  all sectors.

Rebecca Larkin, Senior Economist at the CPA, said, “Following the EU referendum, the entire construction supply chain reported favourable conditions and growth in activity in Q3.

“Forward-looking expectations for Q4 and the year ahead were more pessimistic, with the majority of orders and enquiries balances the lowest in two years, or driven by a single sector – private housing.

“A further factor that stood out as a downside risk to activity in the near-term is the sharp rise in the cost of imported raw materials due to the recent depreciation in Sterling, which is providing a dual hit to construction costs alongside existing wage inflation pressures.”

Latest news

Plan lodged for tallest skyscraper outside London

Developer Salboy submits plan for 76-storey Manchester resi tower
53 mins ago

Curo starts £170m race for new homes framework

Bath housing association plans to build up to 300 homes a year
52 mins ago

Gove approves major Cambridge North mixed-use scheme

Goverment backs controversial scheme of 424 flats and 600,000 sq ft of tech and lab space
29 mins ago

Pontins holiday park to house Sizewell C builders

Suffolkt holiday park to house 500 nuclear construction workers
16 mins ago

Adrian Bloor targets 1,000 homes-a-year

Expansion plans after major investment into challenger house building business HarperCrewe
32 mins ago

Housing firm fined £528,000 after cable strike

Maintenance workers given no information on underground services
15 mins ago

Berkeley subbies face six weeks without payments

Introduction of new finance software means payment hiatus for suppliers
24 hours ago

Pagabo reveals 56 winners of latest £1.6bn retrofit deal

Decarbonisation Solutions Framework launched: Full list of winners
24 hours ago

Go-ahead for £100m Liverpool Love Lane flats

500-flat scheme will be built across four blocks in Vauxhall area of city
24 hours ago

Unions win HS2 site access battle at Old Oak Common job

Skanska, Costain, Strabag JV now the last denying unions access to HS2 sites
23 hours ago

Contractors jack 1,100t viaduct into place in 13-hour operation

158m-long composite deck structure jacked into place 10-hours ahead of schedule
24 hours ago

Wates wins former Daily Mail printworks transformation

British Land advances major cultural venue at London’s Canada Water
2 days ago

Mace poaches Ramboll chief to be Head of Engineering

Martin Feakes will develop civil and structural engineering offer at Mace
2 days ago

Subcontractors form alliance for major civils jobs

Trio of specialists join forces to collaborate and offer Tier 1 contractors a turnkey solution
2 days ago

Fear of supply chain failures boosting collaboration

Procurement survey also reveals project bank account use is rising
2 days ago

Wates sets up business to target 160,000 mouldy social homes

Healthy Homes service will be offered to social landlords across England
2 days ago

Higgins wins £75m Peabody Passive House job

Latest phase of Deptford Landings to start construction
2 days ago

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
2 days ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
3 days ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
3 days ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
3 days ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
3 days ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
3 days ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
3 days ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
6 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
6 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
6 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
6 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
6 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
6 days ago

Contractor services