Material prices rise 4.5% in July | news

Material prices rose 4.5% in July, while the prices of certain imported wood species rose by around 23%.

Imported plywood prices were almost 82% higher in July than they were in August 2020, according to the latest figures from the Department of Enterprise, Energy and Industrial Strategy (BEIS).

The next strongest price increase was recorded by structural steel construction with 65% more than a year ago, while the prices for sawn or planed timber rose by more than 64% year-on-year.

Material prices across all construction sectors in July were more than 20% higher than in the same month last year, with repair and maintenance showing the largest increase at 23%.

The annual growth rate of producer prices in construction was 3.4% in June 2021, the strongest annual rate since August 2019.

The numbers come from warnings from several brick manufacturers of imminent price hikes.

The brick manufacturer Wienerberger is said to have warned its customers of a price increase of 10.3% from January 1st next year for new orders and pre-orders in all of its ranges.

Ibstock also said last month that its prices would increase by 10.5% for all rangers from November, while Michelmersh recently alerted its customers to a price increase of 7% to 9%.

A shortage of truck drivers is contributing to the increases, with the site management council warning last month that the issue is now the main concern for many material suppliers.

The agency said some suppliers asked construction companies to collect their orders as they couldn’t find enough drivers to complete the deliveries.

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