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Action to tackle plaster shortage under joint construction industry approach
CONSTRUCTION LEADERS ARE keeping a watching brief on plaster shortages, in a cross- industry collaboration to support the sector’s road to recovery. The BMF and the Construction Products Association (CPA) are working to pinpoint and address the key issues as more builders return to site.
As the joint leaders of the Construction Leadership Council (CLC) Product Availability Group, they gauged the views of merchants, manufacturers, house builders and contractors to discuss the key issues yesterday (June 11). John Newcomb, CEO of the BMF, said: “The latest information
yesterday shows that plaster continues to be challenging in terms of supply.
“Currently the biggest issue is significant replenishment demand in the network.
“We have also had reports of panic buying of plaster, which is also having an impact.
“However, production output is now performing ahead of plan, and it was reported by some in the group that issues with supply are easing.
“We are now taking steps to reassure the industry that, with manufacturing now in place to a high output, the situation is improving and will be resolved in
the weeks ahead.
Peter Caplehorn, CEO of the CPA, said: “We all recognise it is absolutely vital that, as we take the road to recovery, the construction industry has the products it needs, and we’ll continue to use information and data-driven intelligence to act on issues as they arise.”
Set-up to monitor the building products supply chain to meet increasing demand in the re- opening period, the CLC’s Product Availability Group includes the BMF’s five largest merchant members, along with five of the CPA’s largest manufacturing members.
Government launches Trade Credit Insurance guarantee to support businesses during Covid-19
TRADE CREDIT INSURANCE provides protection for businesses when customers do not pay their debts owed for products or services. But due to COVID-19 and businesses struggling to pay bills, businesses have faced the risk of credit insurance withdrawn, or premiums increasing to unaffordable levels.
The Government has today announced Trade Credit Insurance will receive up to £10 billion of government guarantees. The Trade Credit Reinsurance scheme, which has been agreed following extensive discussions with the insurance sector, will see the vast majority of Trade Credit Insurance coverage maintained across the UK.
Businesses do not need to apply directly to this scheme, as support will be administered directly between the Government and available insurers operating in the
UK market.
The scheme is available on a temporary basis for nine months, backdated to 1 April 2020, and running until 31 December 2020, with the potential for extension if required.
The scheme will be followed by a joint BEIS/HMT-led review of the Trade Credit Insurance market to ensure it can continue to support businesses in future.
Business Secretary of State Alok Sharma said:
“Trade Credit Insurance is a daily necessity for hundreds of thousands of businesses across the UK – particularly those in non-service sectors such as the manufacturing and construction sectors.
Our £10 billion guarantee gives peace of mind to businesses, allowing them to continue to trade and maintaining liquidity in supply chains. This reinsurance
July 2020
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scheme is an important step as we carefully set about firing up our economy as we emerge from the pandemic.”
Chief Executive of the BMF and Chair of the Insurance and Surety Working Group for CLC Covid-19 Task Force, John Newcomb said: “The construction industry is one of the largest users of trade credit insurance accounting for some 30% of the market.
Amongst other things, trade credit insurance gives builders’ merchants the confidence to trade freely with SME building firms who largely operate in the residential sector. The government-backed guarantee will keep cash flowing through the building materials supply chain and protect thousands of jobs.” Andy Mitchell CBE, co-Chair of the Construction Leadership Council, said:
“Trade credit insurance plays a significant role in construction, giving businesses the confidence to trade with one another. Our Industry Recovery Plan seeks to provide the construction industry with the tools and support they need to get back to work. The launch of this government- backed guarantee to support the provision of trade credit insurance is therefore a welcome announcement.”
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Photo: Unsplash
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