Supply of gas boilers and M&E products remains a challenge
The availability of construction products is improving across the board driven by the slow start to 2023, according to a Construction Leadership Council working group.
A reduced level of activity, poor weather and a delayed return to sites after the Christmas break were all cited as contributing factors to softening demand across regions and product types.
The latest report from the CLC鈥檚 product availability working group reported ongoing problems with gas boilers and M&E products, where global supply chains are a more significant factor.
Working group co-chairs John Newcomb and Peter Caplehorn said bricks, blocks and roof tiles remained on allocation in some regions but that 鈥渨ith manufacturers managing deliveries and builders鈥 merchants adjusting to the situation and carrying extra stock, the majority of end-users are not experiencing shortages鈥.
Timber prices have continued to fall but will likely rise in the second quarter as European mills reduce production over winter, while the prices of energy intensive products increased by 10% in January due to energy and distribution costs.
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The pair reported improved shipping costs from east Asia, down 80% from last year鈥檚 high and approaching pre-covid levels.
But they warned that a Covid surge in China, combined with the closure of factories in the country for last weekend鈥檚 Chinese New Year celebrations, could affect supply chains.
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