Construction SMEs have reported a range of material price increases since the depreciation of sterling following the EU referendum in June 2016. Small building firms were asked which materials have increased the most and the results were as follows:
- Timber
- Insulation
- Bricks
- Blocks
- Windows
- Plasterboard / Slate (joint sixth)
- Boilers and radiators
- Porcelain products
- 85% of builders think material price rises could drive consumers to hire rogue traders in an effort to save money on their building projects;
- One third of construction SMEs (32%) have had their margins squeezed;
- Almost one quarter (22%) have been forced to pass material price increases onto their clients, making projects more expensive for consumers;
- More than one-in-ten builders report making losses on their building projects due to material price increases.
Berry concluded: “Material price spikes aren’t just a problem for builders – they’re also a problem for the home owner, with almost one quarter of builders saying that they have had to pass on price increases to their clients. This means that building projects now cost significantly more than they did this time last year. What with stagnant wages and price inflation across the economy, consumers are feeling the pinch and it might be that they decide not to commission that loft conversion or extension after all. Or worse still, 85% of builders believe that home owners will be tempted to hire rogue traders who are quoting a lower price than a professional building firm such as those that belong to the FMB. If that’s the case, material price rises could lead to a flurry of botched jobs and distressed consumers. We’re calling on home owners to hold their nerve – they’re better off commissioning a more modest project from a professional builder than a high spec project from a cowboy. Don’t take the risk.”
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This issue is appealing to the likes of a wide range of companies that own all the vendors and retail outlets. They do absolutely control the market, and pricing gives great returns to their investment and the small construction Agencies suppliers will have to go downward.
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