January 2019

The Big Question
IS PRICE STILL THE DRIVING FACTOR
ON CONSTRUCTION PROJECTS?
Ian Exall, National Sales Manager for
Polyfoam XPS.
A: Fundamentally, price remains the driving factor
on construction projects, but priorities
have shifted. The focus is no longer on
specifying or purchasing the
cheapest products. The priority for
most of our customers is value for
money. They want affordable
products, but which can still perform
to high standards and are seeking
assurances through third party guarantees and
certifications such as BBA before purchasing.
Cost certainty is another key consideration which
is being fuelled by Brexit and fears of the
unknown. We are getting lots of requests for longterm
pricing for projects, especially for larger
schemes which could take two years or more to
complete. Many contractors are worried about the
risk of product and labour inflation, so want the
assurance that prices will remain stable despite
potential changes to market and / or economic
Andrew Hayward, MD, Russell Roof Tiles.
Absolutely price remains the overriding factor in the
vast majority of situations though manufacturers’
guarantees and environmental credentials are
gaining more and more importance.
Labour shortages are also a major concern for the
construction and many other industries. Currently,
a huge portion of the workforce are from the EU
and the final outcome of Brexit could ultimately
result in more red tape for those and a massive
shortage in labour on construction projects.
The other labour challenge is the aging workforce,
there are figures which suggest that over 20% of
the workforce is aged between 50-60; we’re
losing skilled workers to retirement. The problem
which we have talked about but is not being
addressed is that we are not attracting young
people to replace them. Construction and
conditions. Whilst this is understandable, it simply
moves the risk along the supply chain where
margins may be insufficient to withstand potential
inflationary pressures.
At the same time, we have noticed a
big crackdown on specification
switching and so has our
distribution network. This is a
trend which follows the
recommendations in the Hackitt
Review and the push for more competency
across the construction industry.
Long-term, this will have a positive impact on our
sector as switching specified insulation during
construction can lead to inaccurate U-values and
potential non-compliance with Building
Regulations.
However, following the Grenfell tragedy,
minimising risk is another priority for construction
professionals and this is affecting all aspects of
the industry, including specification. As a result,
manufacturing careers are simply not appealing to
school leavers.
We’ve done a huge amount over the past 18
months working with schools and colleges local to
our sites – but the sectors as a whole need to
address this.
Lack of available skilled workers is a big
challenge waiting to happen and is not being
sorted! Brexit is a major concern to all businesses
at present but construction ploughs on regardless.
Within the housing sector it appears that
consumer confidence is the biggest challenge and
that more house buyers are concerned about the
uncertainty of the market and this is delaying new
home some sales.
We expect that Brexit will slow down construction
temporarily, but when taking into consideration
the rising population, immigration, people now
we are seeing some insulation specifications
being held even if there is a better product
available both in terms of cost and performance.
This suggests that roofing contractors, main
contractors and other specifiers are reluctant to
take on the responsibility of any liability that may
come with such a change.
Uncertainty won’t go away in 2019 and inevitably
that means our customers will continue to put
price in the priority list but it’s no longer just a
numbers game. The whole industry is moving
towards a more forensic approach that shines
the spotlight on quality, performance and risk,
and this will continue to affect purchasing
decisions.
For manufacturers of construction products, this
underlines the ever growing need to provide
assurances, advice and support which help
contractors and specifiers make more informed
decisions.
www.polyfoamxps.co.uk
living for longer, the increased divorce rate and
homelessness, the rate of construction will
undoubtedly increase again.
Brexit will be resolved in, I suspect, a much more
orderly fashion than the current mass hysteria is
predicting, because it’s in everyone’s interest
both business and consumer alike.
Price at times can slow projects as builders look
for equivalent products at lower costs which
therefore has an impact on production planning
and stock availability. Price will still remain as the
primary driver, but quality and the standards of
products will still play a huge part.
As sales volumes grow, inventory and speed of
supply will overtake price as happened previously
in 2016/17.
www.russellrooftiles.co.uk
28 TC JANUARY 2019