November/December 2021

News Roundup
HGV DRIVER SHORTAGE IS ‘MOST CRITICAL’ SUPPLY CHALLENGE
The Construction Leadership Council (CLC)
has flagged the shortage of HGV drivers as
‘the most critical issue across the board’, in a
statement addressing product availability.
The statement from John Newcomb, CEO of
the Builders Merchants Federation and Peter
Caplehorn, CEO of the Construction Products
Association, co-chairs of the CLC’s Product
Availability working group, says that in general,
demand for construction products has fallen from
the peaks seen during spring and summer.
This, says the statement, has been particularly
evident with a slight softening in residential DIY and
repair, maintenance and improvement projects.
Nevertheless, it is reported that ‘the overall market
remains extremely strong and the expectation from
all regions and sectors is that this will continue
during the final quarter of the year’.
While product supply has improved in some
areas, ‘several critical challenges remain’,
particularly around logistics and related labour
shortages, and rising product and input costs.
The shortage of HGV drivers is cited as ‘the
most critical issue across the board’, identified
by many as a key risk involving not only late
deliveries but hiring, retention and wage inflation.
While the CLC says it ‘continues to add its voice
to the chorus of other UK industries suffering
similar issues’, it maintains that ‘there does
not appear to be any immediate solutions
forthcoming’.
The consensus from the logistics and road
haulage sectors is that we should not expect
any improvement in this shortage until the first
quarter of 2022 at the earliest.
‘WORST PHASE OF SUPPLY CRUNCH MAY HAVE PASSED’ SAYS PMI
The number of UK construction companies
reporting supplier delays fell in October
according to the latest IHS Markit PMI,
suggesting the “worst phase of the supply
crunch may have passed”.
Just over half (54%) of construction firms reported
longer supplier delivery times, down on 63% in
September and June’s peak of 77%. Delays were
‘overwhelmingly linked’ to haulage driver shortages
and international shipping congestion.
Tim Moore, director at IHS Markit, said despite
“widespread reports” of materials and staff
shortages disrupting work on-site, with rising fuel
and energy prices adding further pressures, “the
worst phase of the supply crunch may have passed”.
Similarly, reports of rising purchasing costs
continued to recede from the record highs seen
this summer.
The IHS Markit/CIPS UK Manufacturing
Purchasing Managers’ Index rose to 54.6 in
October, up on 52.6 in September and against the
no-change reading of 50. Companies reported
strong customer demand but some suggested
supply shortages and escalating costs had
hindered contract negotiations.
Around three quarters (73%) of respondents
reported an increase in purchase prices, attributed
to rising energy and commodity prices, raw material
shortages and a lack of transport availability.
Duncan Brock, group director at CIPS, said:
“Activity in the construction sector powered ahead
in October with the fastest rise in purchasing for
three months as builders continued their summer
bounce into the autumn and resorted to forward
buying and building stock levels.
“With rising optimism and employment levels
builders seem confident that the next 12 months
will be rosier. However, with the squeeze
on supply and staff shortages, it’s far from
guaranteed that uncertainty and instability are
behind us just yet.”
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