CLC: Material shortages could derail housing growth target

Material shortages could stymie the government’s housing and infrastructure development plans unless urgent action is taken, according to the Construction Leadership Council (CLC).

In a statement, John Newcombe and Peter Caplehorn, co-chairs of CLC’s materials supply group, said product availability was currently “good” despite higher demand for bricks and tiles driven by a “slight increase” in residential construction activity.

However, product and material suppliers have cut capacity due to the recent slowdown in construction activity, raising the risk of not having enough capacity to meet rising demand, it said.

The statement said: “Demand has declined worldwide over the past two years, resulting in the closure of older plants, loss of skilled labor and very low inventory levels.

“In the week leading up to the new Chancellor’s first budget, the main concerns flagged by the group focused on the potential impact of the government’s ambitions for new housing and infrastructure, with producers adjusting capacity over the last 18 months to meet much lower levels of demand.

“This includes construction products manufactured in the UK, as well as materials such as engineered timber, which are predominantly sourced from European suppliers and are in demand in many countries, not just the UK.

“This could become problematic if there is rapid growth in demand for construction products between now and 2025.”

The group launched a study to assess the ability of UK manufacturers to ramp up production to meet the level of demand that will arise from meeting the government target of 300,000 homes a year.

The statement said: “Understanding the complexity of the construction materials supply chain and the constraints it presents will be essential to the successful planning and implementation of the Government’s growth plans.”

However, he acknowledged that estimating global supply is more challenging.

It said industry forecasts indicate growth, particularly in the housing sector, is unlikely to arrive until the second half of next year, giving the sector time to prepare.

It said: “Noting the complexity and length of the materials supply chain, members strongly advocate that industry use this time to plan ahead, work closely with your supply chain, and anticipate and communicate your needs early to suppliers, distributors. and builders’ merchants.

“Collaborative and ongoing communication across the supply chain is mutually beneficial and essential to a healthy and productive UK construction industry.”

Newcombe is chief executive of the Builders Trades Federation and Caplehorn is chief executive of the Building Products Association.

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