February 2022

Product Availability
More news, updates and interviews at www.total-contractor.co.uk
LEAD TIMES SAID TO BE 24-41
WEEKS ON SOME ROOF TILES
John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of
the Construction Products Association, co-chairs of the Construction Leadership Council’s
Product Availability Working Group, have delivered their latest Product Availability update
which shows roof tiles are amongst the products still affected by supply challenges with
“lead times of 24 weeks and rising to 41 weeks for some profiles.”
sales remain strong, a
gradual improvement in supply
“While
has been helped by the seasonal
reduction in demand – particularly in domestic
repair, maintenance and improvement (RMI) over
the Christmas period. Going into the new year
there are relatively good stocks and availability of
most products, including timber where prices
have also fallen from their peak.
“However, as reported in previous statements
supply challenges continue to affect bricks and
aircrete blocks, roof tiles, steel lintels, manhole
covers, plastic drainage products and certain
sealants, coatings and paints.
“In addition, a shortage of semi-conductors is
constraining the availability of boilers at a time
when demand is exceptionally high. Semiconductors
are important components for many
advanced construction products including lighting
and fire protection systems, kitchen white goods
and air-source heat pumps. Although PAG has
not seen direct evidence that a shortage of chips
is affecting production, we will be increasing
market surveillance to spot any early signs of
market disruption.
“Rising energy costs and price inflation continue
to cause concern, with the latest forecasts
anticipating 2022 price inflation from 7-10+%,
with multiple increases expected for some
products.
“The impact of Omicron has been limited, with an
overall level of absence across UK industry at 5%
or less during the past month, though some
sectors, such as haulage, have been hit harder
than others. Absence due to Covid remains a risk
over the winter period but appears unlikely to
cause major disruption at current levels.
“Looking more closely at current and future
challenges:
• A global shortage means that semiconductors
are on allocation. Due to the size of
their orders, there is a natural bias in the
system towards automotive and electronics
firms, which may cause issues for
manufacturers of boilers and building related
electrical systems.
• The high level of demand means that a
shortfall in the domestic production of bricks,
which is already at full capacity, will continue
throughout 2022 until three new UK brickmaking
plants come on stream in 2023 and 2024,
boosting UK annual capacity by about 150m
bricks per year. Imports largely from the EU and
potentially beyond will be required to meet
current demand.
• Demand for roof tiles remains high with lead
times averaging 24 weeks and rising to 41 weeks
for some profiles. Additionally, clay tiles are
subject to price increases due to rising energy
costs.
• Raw material supply for plastic products has
stabilised over the last quarter, leading to
improvement in product supply. Order backlogs
are not growing but are unlikely to be cleared
until the second quarter of this year.
“We continue to stress
the importance of
maintaining open lines
of communication
throughout the supply
chain”
• Delays and volatile prices for global shipping
look set to continue at least until Q3 2022. China
is home to seven of the top 10 container ports,
which have a sustained ‘zero’ policy with regard
to Covid outbreaks, leading to shutdowns and
delays that have worsened global bottlenecks.
Furthermore, with the Beijing Winter Olympics
taking place in February, factories will be closed
in 64 northern Chinese cities to improve air
quality. This will almost certainly affect some
construction products, which will have a knockon
effect of levels of inventory later in 2022.
• While the issues previously affecting timber
and cement availability have eased, they have not
been fully resolved, and longer lead times may
return as the volume of demand increases later in
the year.
“We continue to stress the importance of
maintaining open lines of communication
throughout the supply chain and encourage all
sectors to continue to work closely and
collaboratively to manage challenges and plan
future work.”
www.constructionleadershipcouncil.co.uk
14 TC FEBRUARY 2022