A materials shortage could stymie government plans for housing and infrastructure growth without quick action, according to the Construction Leadership Council (CLC).
A statement from John Newcomb and Peter Caplehorn, co-chairs of the CLC’s Material Supply Chain Group, said that product availability was currently “good”, despite higher demand for bricks and roof tiles stemming from a “slight increase” in housebuilding activity.
However, product and materials suppliers have reduced capacity due to recent subdued construction activity, raising the danger of a lack of capacity to meet a surge in demand, the statement said.
The statement said: “Demand worldwide has declined in the past two years leading to the closure of older facilities, the loss of skilled labour, and very low stock levels.
“In the week before the new chancellor’s first Budget, the main concerns flagged by the group centred on the potential impact of the government’s ambitions for new housing and infrastructure when, over the past 18 months, manufacturers have adjusted capacity to match far lower levels of demand.
“This includes construction products manufactured in the UK but also materials, such as structural timber, which are predominantly sourced from European suppliers, and are subject to demand from many countries, not just the UK.
“This may be problematic if there is a rapid surge in demand for construction products as we progress through 2025.”
The group has launched research to gauge the capacity of UK producers to ramp up output to accommodate the level of demand that would flow from meeting the government target of 300,000 homes a year.
Its statement said: “Understanding the complexity of the construction materials supply chain and the limitations this presents will be essential to the successful planning and implementation of the government’s plans for growth.”
However, it admitted that assessing global supply was more challenging.
It said that industry forecasts indicated that growth, particularly in housing, was unlikely to arrive before the second half of next year, giving the sector time to prepare.
It said: “Having noted the complexity and length of the material supply chain, members of the group strongly advocate that industry uses this time to plan in advance, work closely with your supply chain, and forecast and communicate your requirements early with suppliers, distributors and builders’ merchants.
“Collaborative, ongoing communication throughout the whole supply chain is mutually beneficial and essential to a healthy, productive UK construction industry.”
Newcomb is chief executive of the Builders Merchants Federation and Caplehorn is chief executive of the Construction Products Association.
