Well into the second half of 2022, there’s no doubt the UK has had to navigate choppy waters over the last nine months. Numerous issues, such as a fluctuating Government and a lack of affordable housing, have affected everyone, including homebuilders, product manufacturers, and builders' merchants. All of which, unavoidably, has caused the market's growth to stagnate.
Formerly secure supply chains have weakened due to geopolitical unrest and domestic disputes, leading to soaring inflation. This, in turn, has been a major contributor to the recent rise in material costs, rocketing fuel prices and labour shortages in the UK and Europe.
With industrial action on the rise, the construction sector is feeling the strain of events entirely out of their control. A recent 8-day strike at the Port of Felixstowe, the UK’s largest container port, will certainly have long-lasting repercussions, particularly for builders’ merchants. The port acts as an entry point for 48% of containers imported into the UK, handling up to 4m containers a year from 2,000 ships meaning access to many internationally-sourced products will be compromised.
The knock-on effect of this disruption has already been keenly felt within UK housebuilding and will resonate for months to come. Project start delays are continuing to increase, and this is now starting to impede the development pipeline, with Glenigan recently highlighting a drop in planning approvals and contract awards.
With prices for building products, including timber and steel, at a record high, demand is outstripping supply and it seems this will remain the norm in the short term. Something’s got to give or we risk long-term stagnation against the backdrop of a volatile market.
However, in tough times, there are some growth opportunities. For me, that lies in looking much closer to home at domestically produced materials to increase stock in the immediacy.
As we head into the harsh winter months, it’s imperative that attention is paid to the materials we want to import, particularly if we want to futureproof our residential stock from climate change and frenetic energy tariffs.
Of course, there is no quick fix. Looking closer to home for high-performance materials can certainly help mitigate this increasingly desperate situation. From a logistical and sustainability perspective, smaller supply chains from domestically produced materials make perfect sense, easing the strain for merchants, housebuilders, and developers alike.
Furthermore, reduced shipping will result in fewer emissions and help to lower costs overall.
Builders' merchants can play their part too, by taking an active approach to ardently promote the importance of fabric-first thermal efficiency to clients to encourage them to take a leaner approach to building in line with the stringent building regulations now in force.
They can use these local hero materials to emphasise this message. Not only will this provide some supply chain relief in the short term, but it will also see merchants making an active contribution to Net Zero 2050, with minimal disruption to current business models. It’s not a case of forsaking imported materials, far from it, but an immediate, strategic fix. But merchants will stand to benefit in the long run by having a small supply chain strategy.
Check out this news in The Guardian.
At the moment, we need to accept that importing reasonably priced materials is seemingly a thing of the past. However, there is an avenue to help alleviate pressure, and that can be through rediscovering safe, robust and reliable UK-produced products manufactured right here on our doorstep.