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#NU BLOG

Increasing Construction Costs: Reasons and Predictions for 2022

According to the latest survey from the Federation of Master Builders (FMB), 9 out of 10 builders have to delay projects due to rising prices, shortage of workforce, and most importantly, shortage of materials. There are several materials affected, causing the setback of jobs. Here is Nu Projects' analysis.


Steel


Back in May 2021, British Steel needed to stop orders on structural steel according to the extreme rise in demand. This led to an £80 rise in the tonne price of structural sections. At the moment, there is a nationwide shortage of steel lintels.


Roof tiles


In the first half of 2021, almost half of the National Federation of Roofing Contractors members raised awareness of the concrete roof tile shortage. Concrete roof tiles are one of the hardest materials to obtain in the first place, so the ongoing shortage make projects delay on an extreme level. The average lead time for concrete tiles is 24-30 weeks, and even though factories are manufacturing at full capacity, the demand hinders stock replenishment.

Good news: The CLC expects the ease of lead times from 2022 spring.


Cement


According to Department for Business, Energy & Industrial Strategy (BEIS), cement production dropped by 11,4%.


Timber


There was a severe timber batten shortage in 2021, but according to the reports of the Timber Trade Federation (TTF), there was a "record-breaking" imports of timber last year, fixing the timber supply.


Bricks and Blocks


Lead times on brick supply was also expanding in 2021, the CLC says. The high demand still affects the supply chain this year, causing long-term issues for builders.


Paints and Sealants


Paints and sealants supplies have been restricted due to a global shortage in the UK.


It was also harder to obtain the following materials in 2021:

  • Concrete

  • Insulation

  • Electrical components