25 Jun How the Building Boom Affects You
We explain why the construction industry is struggling to keep up with demand in post-pandemic post-Brexit Britain – and why DDG Windows will stay unbeaten on price!
What is the building boom – and what does it mean for you?
The last twelve months have wreaked havoc with the construction industry. The pandemic and Brexit have affected the supplies of everything from timber, cement, and steel, to screws, paints, and electrics. Demand is so high that British Steel recently stopped taking orders. This shortage could last until the end of 2021, where year-on-year the cost of materials increased by 8.4%!
Why is this happening?
At the start of the pandemic, many building projects were put on hold. Now, we’re in the middle of a building boom.
Private homeowners are also spending more time at home, so want to update or renovate where they’re spending most of their time. This has increased the demand for trade skills, meaning wait times are longer.
On top of this, supply chains came to a halt as factories closed down because of the pandemic.
Then, when the UK left the EU at the start of 2021, the market was hit even harder. Supply chains now have to fill in additional paperwork to move goods between the UK and the EU. This makes the process longer and means goods can’t be moved as quickly.
Around 60% of the UK’s imported construction materials come from the EU, which means the additional paperwork, and the materials shortage, creates serious challenges in the construction industry.
IHS Markit suggests February saw the highest increase in average cost across construction since summer 2008.
Prices are unlikely to change any time soon, with Swedish timber production down 7% in 2020, and Finnish production down 15% compared to 2019. They simply can’t keep up with the demand.
Shipping is another challenge faced by the industry right now. The shipping container which blocked the Suez Cancel for almost a week created a backlog of almost 400 vessels.
Because of all this, it now costs almost (£5,873 ($8,300) to ship a 40ft container from Asia to Northern Europe. In the summer of 2020, it was £1,061 ($1,500). This has a big impact on what businesses can – and can’t – do.
Thankfully, costs are likely to reduce over the next three to six months. But, according to Noble Francis, economics director of the Construction Products Association, global demand for construction material is likely to remain high for the next six to nine months.
Since everyone is spending more time at home, it makes sense that they want to spend their time and money creating their dream home. But, with everyone doing it at the same time, it inevitably creates supply and demand issues.
How does this affect you?
When it comes to any form of construction on your home – whether that’s repainting the lounge, new carpet in the hallway, or new windows throughout – it could mean longer lead times. If someone says that can deliver in 2 weeks, It’s likely that it’s going to be closer to 8 weeks right now.
It could also mean projects take longer to complete – especially if construction teams are smaller because of social distancing rules.
Due to the supply issues, many businesses are having to increase their prices. However, DDG Windows remains unbeaten on price! We’re here to help you create the home of your dreams, whatever’s going on in the world.
If you’re planning a home renovation, don’t delay ordering your windows and doors – be sure to order them as early as possible. By the time the build is complete, your windows and glass can be delivered for fitting and you won’t have to live with boarded-up windows while you wait for delivery. Call us on 0208 514 0819 or contact us.