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Materials shortages slow building boom

Prices of sawn wood, structural steel and concrete reinforcing bars have jumped by more than 60 per cent over the past year
Materials shortages slow building boom
  • Larger contractors with more pipeline visibility weather storm better than smaller builders
  • DIY boom and switch to lower-density homes have pushed up timber costs

Materials shortages slowed activity in a previously buoyant construction sector over the summer and as costs continue to spiral there are concerns about the impact supply chain stresses could have on margins and project viability. 

Second-quarter gross domestic product (GDP) data published by the Office for National Statistics last week showed that although output for the sector increased by 3.8 per cent over the quarter, activity slowed in May and June as some companies reported shortages of materials including timber, steel, cement and tiles.

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