Material Supply for Construction Still a Problem
September 7, 2021
Mobile Welfare Units Hire, Expertly Maintained Hire Tools & Equipment, Construction, Roadworks
Growth within the construction industry has been softening over the last few months, with a steep rise in prices. Despite this issue, partly caused by problems with the supply chain, the industry is said to be remaining optimistic. Official statistics show that in the past year the price of building materials has risen over 20%. A recent survey of construction industry purchases indicated that growth is slowing in house building, civil engineering and commercial work activity.
The seasonally adjusted IHS Markit/CIPS UK Construction PMI Total Activity Index displayed a score of 55.2 in August 2021. Anything above the 50.0 mark means growth mode, but unfortunately it isn’t heading in the right direction. July’s score was 58.7 June’s was 66.3. The best performing construction category in August was commercial work the index of which was 56.0. This was also slower than usual, and house building closely followed with an index of 55.0. The slowest growing subsector for the fourth month in a row was civil engineering.
New work has been steadily increasing for the last 15 months, and projects put on hold due to Covid have continued to resume. Clients have been put off by the unreliable supply of raw materials and increased costs. Building companies are upbeat and anticipating a rise in contract awards covering all construction subsectors.
IHS Markit compile the surveys, and their economist Usamah Bhatti stated: “Evidence that the UK construction sector began to feel the impact of ongoing supply chain disruption was widespread midway through the third quarter of 2021. Growth rates for overall activity as well as the three monitored subsectors eased further from the recent highs earlier in the summer. Similarly, new business inflows have continued to increase at a marked pace, yet even here the rate of growth has eased to a five-month low.”
Plant hire seems to have been unaffected by the current situation, and at Rhinos we continue to offer high quality machinery, tools, equipment and Mobile Welfare Units in places like West London.