Source: Federation of Master Builders
A third of small building firms say that soaring material prices are squeezing their margins and almost a quarter have had to pass these price increases onto consumers.
Construction SMEs have reported a range of material price increases since the fall of sterling following the EU referendum in June 2016. Small building firms were asked which materials have increased the most and the results were as follows:
- Timber
- Insulation
- Bricks
- Blocks
- Windows
- Plasterboard / Slate (joint sixth)
- Boilers and radiators
- Porcelain products
The survey, which was conducted by the Federation of Master Builders (FMB) also aimed to find out how the these material prices have impacted the industry.
It found that 85% of builders think material price rises could drive consumers to hire rogue traders in an effort to save money on their building projects. While one third of construction SMEs (32%) have had their margins squeezed.
It also found that almost a quarter of companies had been forced to pass material price increases onto their clients, making projects more expensive for consumers.
Brian Berry, chief executive of the FMB, said: “Material price increases have left builders under severe pressure. This research shows that following the fall in the exchange rate, timber is the material that the majority of builders say has increased most in price but the problem doesn’t end there – everything from insulation to windows to bricks and blocks are soaring in price.
“A third of builders report that these price increases are eating into their already razor-thin margins – and this on top of increased wages and salaries stemming from long-term construction skills shortages.”
