Voice of the Helping Construction Workers Mitigate Rising Costs
By Carl Ghinn, Managing Director at Fixmart The continuing challenging pound to dollar rate has meant that the cost of materials has risen dramatically in the past 12 months, particularly for steel. Consequently, suppliers are attempting to find ways to maintain decent profit margins both for them and their customers. At Fixmart we work closely with contractors of all shapes and sizes, both in the construction and M&E sectors, and here are some of the challenges they face due to the increase in cost of materials. Price fluctuation is one of the major risks in the construction world. During the
tender process contractors are understandably expected to cost every element, however this is often for projects that may not start for at least 6 months. If their tender is accepted they will be held to this price regardless of any marketplace changes. Yes, in some cases prices do go down, but in the majority of cases they go up, leaving the contractor with a much-reduced margin or even a loss. Even if companies factor fluctuation into their final cost, it hasn’t been easy to
estimate what these changes will be due to recent political uncertainty. In fact, The Federation of Master Builders found that 70% of the 232 UK companies polled had recorded an increase in prices of materials owing to the pound’s fall since the Brexit vote, and as the talks are ongoing, the pound is continuing to decrease and import costs are rising. Over a quarter of the materials used by the UK construction industry are
imported, meaning a fluctuation in currency rate is felt heavily across the whole sector, in particular those using steel. In October 2016, the price of steel increased by 8%. This was a huge problem for some of our customers but, as we follow the markets closely, we had decided to bulk buy a large number of products before this increase. With the additional benefit of our 60-day credit terms, we were able to soften the blow for our clients who needed those products within the following
six months, subsequently reducing the risk involved. Moving forward, suppliers to the industry have to decide the best way to provide the products that their customers need whilst mitigating rising costs, assuring quality and maintaining a profit margin. As well as negotiating with existing
suppliers, many companies are now looking to source their products from regions where costs are lower, such as The Far East and Turkey. However, whilst this may be a cost-saving solution, this could potentially affect the standard of steel you are receiving. Therefore, it is vital for businesses to vigorously check the quality of materials upon arrival, helping to avoid any issues that may arise from using sub-standard products. In the mean time, at Fixmart, we are continuing to provide a range of services
that will help our clients to operate efficiently and avoid additional costs. Our product expertise and prefabrication service helps construction workers save vital time when it comes to ordering and assembly on site. Furthermore, our new communications service helps trade workers to avoid penalties from delayed deliveries. The long-term impact of Brexit upon the construction industry is, as yet,
unclear, but what is evident is that it is having a significant effect on the cost of materials, and we are committed to mitigating the cost of the increase as much as possible.
Toolbank Launch NEW
Leica Laser Calibration Service Background: Leica Geosystems is the market leader in measurement technology, and rapidly
becoming the fastest growing manufacturer of laser technology products in our industry. Leica’s renowned Rugby range is highly regarded as the best rotational lasers
on the market, however all lasers should be regularly checked for accuracy, and some applications will require a laser to carry a valid calibration certificate before being used on site. We are proud to now to offer an in-house calibration service for Leica
rotational lasers. Which lasers can be calibrated? Although most professional lasers can be calibrated, using the Leica Calmaster
system we will only service Leica Rugby rotational lasers. These include: Leica Rugby 600 series: Rugby 610 Horizontal levelling Only Rugby 620 Horizontal levelling with slope Rugby 640 Horizontal & Vertical with slope Rugby 670 Horizontal with gradient control Rugby 680 Horizontal with dual gradient control
Leica Rugby 800 series: Rugby 810 Horizontal levelling with slope Rugby 820 Horizontal with slope matching & gradient control Rugby 840 Horizontal & Vertical with slope & gradient control Rugby 870 Horizontal with gradient control Rugby 880 Horizontal with dual gradient control
10 ToolBUSINESS+HIRE
www.toolbusiness.co.uk
The Service: Toolbank have installed Leica’s Calmaster calibration system, which allows us to
check, adjust and provide a calibration certificate for all Leica Rugby lasers. Toolbank are accredited as Leica service partners and laser calibration will be as
per Leica’s own factory based systems, using Leica equipment and recorded as a service record which will be shared with Leica to provide a service history for each laser. A calibration certificate will be produced for each serviced laser, showing the
actual laser output against the allowable tolerances. This is valid for one year as proof of calibration. For more information, visit:
www.toolbank.com or
www.toolbankb2b.com
Email:
web@toolbank.com Telephone: 0800 977 4242. (or 01322 321495)
Industry
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