Construction product availability improves INDUSTRY
VOICE
Overall product availability is good and returning to pre Covid levels, while some bricks, blocks and plasterboard and roofing product are occasionally still subject to disruption or allocation. Despite this, lead times for these products are now lower than earlier in the year.
That’s according to a statement from John Newcomb, CEO of the BMF, and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Councils Product Availability working group. Gas boilers and other products containing semi - conductors and electrical components remain the most problematic in terms of supply, for reasons covered
extensively in previous statements. In addition, the electro - technical sector has highlighted a new area of concern regarding the supply of solar and environmental products., with difficulty identifying those concerns coming from Chinese manufacturers with the proper accreditation. This is a growing product area with increasing demand, so the UK construction industry is challenged to ensure such products are of the proper standard and quality.
Timber availability is good with further reductions in price due to large amounts of stock already in the UK and reduced shipping costs. The one issue for timber centres on birch plywood which due to sanctions, cannot legally be
sourced from Russia. With limited supplies available from Latvia and Finland, we advise speaking to plywood suppliers regarding alternatives.
Shipping lead times from the far East are improving, though China is now experiencing rising Covid rates following the relaxation of their lockdown regulations which may lead to more bottlenecks. However, with a surplus of containers in China and container rates generally down by 80% from their peak, this is a great improvement.
Price inflation for products slightly moderated across the board this month, but looking ahead, rising energy and wage costs are expected to put pressure
Merchants’ double digit plumbing & heating sales grow
is fuelled by inflation: but volume is flat The latest Plumbing & Heating Merchant Index (PHMI) report, published in November, shows total value sales through specialist Plumbing & Heating merchants were up +10.8% in Q3 2022 compared to the same period in 2021.
by price inflation (+10.5%) and not volume sales (+0.3%) which remain flat. With one less trading day this year, like-for-like sales were +12.5% up.
Following the trend seen throughout the year, this double- digit growth has been driven
Quarter-on-quarter, Q3 2022 sales were +9.1% higher than Q2 2022. Both volume sales (+6.8%) and prices (+2.2%) were up. With four additional trading days in the most recent
BMF welcomes extension to CE Mark
The BMF has welcomed the Government’s decision to continue to recognise the CE Mark for construction products until 30 June 2025. This is a 2.5 year extension on the planned date of transition to UKCA conformity assessment certification and labelling, which had previously been set for 1 January 2023. BMF CEO John Newcomb said: “It has been clear for many months that more time was
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required for companies to find qualified people to conduct UKCA tests and to prepare the necessary documents and packaging for their goods. This welcome, overdue decision means a ‘cliff edge’ on New Year’s Eve - after which you could not have legally sold certain goods because they have not achieved UKCA status - has been avoided.”
Updated Government Guidance on Construction Products
period, like-for-like sales were +2.3% higher.
Year-to-date value sales from January to September 2022 were +7.1% above the same period a year earlier. With two less trading days so far this year, like-for-like sales were up +8.2%.
Plumbing & Heating Merchants sales in the 12 months to September 2022 were +3.0%
Regulation in Great Britain, which provides practical information for placing construction products on the GB market, can be found
https://www.gov.uk/guidance/ construction-products-regulation- in-great-britain
For as long as the NI protocol is in force, Northern Ireland will align itself with EU rules and construction materials should carry either CE marking and the UK (NI) indication.
The latest Guidance for Northern Ireland can be found at
on prices in the New Year. In particular, manufacturers of energy-intensive products warn that although many have been able to hedge energy costs through Q1 of 2023, energy prices in Q2 and Q3 are expected to be 6-7 times above historical (pre Ukraine War) levels without further hedging or Government support. Several plaster, plasterboard and insulation manufacturers have notified there will be double digit inflationary increases in the New Year.
Against this, a gradual slowing of demand for construction products across most sub - sectors over the last three months of 2022 has helped ease the pressure on product supply.
higher than the same period a year before (October 2020 to September 2021). Volume sales were -4.9% lower while prices were up +8.3%. With two less trading days in the most recent period, like-for-like sales were up +3.8%.
September 2022 value sales were +9.1% above the same month a year ago, but volume sales were down -3.0% with price inflation of +12.4%. With one less trading day this year, like-for-like sales were up +14.3%.
https://www.gov.uk/guidance/ construction-products-regulation- in-northern-ireland
BMF DIARY DATES
Please check the BMF website at
www.bmf.org.uk for all the latest news and events updates in this ever-changing environment.
www.buildersmerchantsjournal.net January 2023
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