Construction price increases explained

Are you are looking to build a conservatory or undertake some home improvements? Through your research you have probably heard that prices have increased. Here are some of the reasons why we have seen material price increases:


Plastics

Across the plastics industry there is a shortage of the polymers required for making UPVC, Resins, Pipes and other materials used in construction. The manufacturers had reduced production because of the Coronavirus and then encountered a series of problems that, combined, have created a global shortage of products.


One manufacturing plant had a fire in their reactor which has temporarily taken it out of production, another closed due to an earthquake, storms closed a further plant in the US and lower raw material stock supplies have created even more problems.

The material shortage has been exasperated by shipping containers being held up offshore because of restrictions in movement. This means that stock expected in the UK have not arrived. With a classic supply and demand market we have seen the cost of all plastics increase dramatically.



Insulation Materials

PIR insulation, the insulated foam boards, are made of polyisocyanurate. As with the supply of plastics some of the core materials used for construction have increased in price by a considerable amount. PIR can be double the price compared to a year ago.



The Timber Market


Due to the coronavirus outbreak the timber mills closed across the world as the various countries introduced lockdowns. Sweden is the UK’s largest timber supplying partner, with over 40% of UK timber imports, when they went in to lockdown, along with Lithuania and Latvia the UK had a massive gap in the supply chain.


Gradually the various countries are returning to limited production with shift working and social distancing rules decreasing their efficiency. The cutting, milling and treating processes have all slowed down which means that stocks have run down.


At the same time the stock was depleted there was an increase in demand as homeowners in “Lockdown” spurred a strong demand with home remodelling and construction. The situation was made worse with America increasing its homebuilding programme, they pushed prices higher and key suppliers in Europe diverted stocks to the USA.


In an effort to prevent having empty shelves the timber merchants in the UK have been paying whatever it takes to keep stock on their shelves – this means that the timber prices are at least 112% higher than a year ago – and there is still a very strong belief that these prices will continue to rise, and an expectation that prices in the market will be realigned and they won’t drop!


Roof Tiles


The demand for clay roof tiles has out paced the manufacturing process. This means that roof tiles are difficult to get hold of – and that the prices have increased.


Having been in the building trade for over 40 years the owner, Daryl Collins set up Colourchange UPVC nine years ago and has established excellent supply chains.


Over the past year, like all businesses in the home improvement market, we have encountered huge delays in the manufacturing of windows and doors. Whilst other companies struggled to get stock we have received a regular flow, albeit having to wait months rather than weeks for goods.


Our divisions Suffolk Conservatory and Office Garden Rooms have continued to thrive, with forward planning we have maintained a regular building schedule.


Despite the frustrating hikes in prices Colourchange continues to be as competitive as possible on pricing, offering excellent value with quality products at the best prices.