In response to a Construction News article this week regarding predictions that material prices won’t fall this year, Sean Keyes has seen first hand the issues that the construction sector has had throughout the last 18 months when it has come to sourcing and purchasing raw materials.

With materials including timber, steel and bricks priced at an all-time high, supply chain issues and high production costs are hitting some businesses hard in the backpocket, and with a mixture of Brexit and Covid seeing no lowering of prices anytime soon, Sutcliffe’s managing director has set out his own personal predictions for 2022, right through to next year.

“Construction News article is no surprise to me or many in the industry, with most companies no matter the size, suffering in one way or another from the rising prices of raw materials.

“Some materials are being sold at an extortionate price and depending on the materials in question, some structural steel projects are seeing a 10 – 20% delay on finishing times, as well as an increase on overall job costs.

“When the price of materials goes up, there is either an overpayment on a contract, or in comparison, if the prices drop, a subcontractor can be incentivised to delay the project, until he can see the benefits of the price drop, which again slows down the whole supply chain.

“Larger companies and projects are getting around certain delays by ordering well in advance, and looking ahead to 2023, I can see prices plateauing, with suppliers ordering larger quantities and making bigger profit margins, with contractors and subcontractors struggling less to get hold of their required materials.”