A combination of Covid-19, Brexit and growing demand for housing are driving up prices for the essential materials the UK’s construction sector urgently needs and along with a shortage in building materials currently it looks as if we could have a crisis in the construction industry.
The UK government’s ambition to “build back better” as part of its strategy to drive growth across the economy, build more and better homes, deliver new transport infrastructure in terms of roads, railways and airports and provide more commercial, office and retail space is putting tremendous pressure on the industry as demand for materials has inevitably risen, yet supplies have slipped, and prices are rising.
Another factor affecting the construction industry is that since the UK’s departure from the EU there is a potential shortage of labour in the domestic construction industry, as foreign workers have chosen to leave the country or stay away after trips home. Coupled with changes to customs rules immediately following Brexit which have slowed imports of building materials and other goods, as border officials try to get to grips with new paperwork covering trade between the E.U. and U.K., putting more pressure on prices and further adding to the building materials shortage. Looking closer to home for vital materials may work for some, but many firms are still reliant on them being shipped to the UK from overseas.