Market Update on Construction Material Shortages

BCIS Materials Cost Index shows that provisionally materials prices rose by 2.7% in the 1^st quarter 2021 and the forecast is currently expecting a 7.2% annual increase.

Recent months have seen a number of reports regarding the price and availability of steel. The Government have advised with their current infrastructure pipeline, an additional 50% of steel is required to fulfil orders. Whilst there is no shortage of capacity, the problems were caused by capacity remaining idle too long after demand started to recover. Steel prices have been volatile and unpredictable in recent years and the Covid-19 pandemic has hindered the stabilisation of prices. Concern has also been raised regarding the shortage of cement, with major distributors reporting shortages across branches.

More information on construction material shortages is available here.