Covid’s Effects on Building Materials Prices

We all know how much Covid-19 has affected so many people, both in terms of their physical well being but also their mental health.

We are all having to adapt to a different world. With this latest Omicron variant being so highly transmissible, we are also experiencing staff and manpower shortages in every industry.

How has this affected the Building Material Manufacturing Sector?

There are a number of things to consider:

  • Building Material prices have soared
  • Inventories are constantly changing
  • Prices for Timber and steel are always vulnerable
  • Prices for cement and concrete set to remain high
  • Building Contractors margins are diminishing
  • Protecting our customers

For Steel and Timber there is a huge global market with a number of buyers and sellers. This makes these markets very competitive. However, the market for concrete, cement and bricks is more local, due to the characteristics of the materials. They are usually large, heavy, and therefore difficult and costly to transport. It is estimated that the cost for these materials will stay high for the foreseeable future. Manpower shortage is one factor, however a major one is disrupted supply chains. Then there are also problems with logistics. The price of energy, chemicals, wood, metals and labour has affected supply.

On Going Effects?

For the building Industry itself obviously the effects are knock-on. The profit margins in the building industry are normally fairly tight, but these increased material costs are squeezing them even tighter.

This also means that it makes it virtually impossible to adhere to agreed programs of work of ongoing projects at already set prices. This can result in a number of unfinished building works which is neither good for the contractors, consumers or the environment.

Remember, an estimate is a price given for a short time, it is not contractual!

A quote however is giving you a defined cost and is contractual although it is sensible always to make sure of any clauses.

R A & Sons Ltd’s Promise

R. A & Sons are doing everything possible to shield our customers from inflating prices and absorb these increases.

However, if costs do rise, we are keeping our customers informed an updated.

Disclaimer

Whilst every effort has been taken to confirm the accuracy of the information presented in this article, R.A. & Sons Ltd and R.A. & Sons Manufacturing Ltd cannot be held responsible for errors and / or omissions or for any direct or indirect consequences resulting from the use and application of its products.

The company expressly disclaims any and all liability as to any results obtained or arising from any use of its products or reliance on such information; no warranty of fitness for any particular purpose or any other warranty, expressed or implied, is made concerning the goods described or the information provided herein.

If you have any questions please contact us here.
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