Protecting your Property as material prices rise.

The past twelve months have seen a number of events have a significant impact on the price of construction materials.  As material scarcity increases prices, how can you prevent your site becoming a more lucrative target for theft?

What has caused the price increases?

Based of the March 2021 ONS data, the price of imported plywood has risen by approximately 30% over the past 12 months.   Based on the same data, prices have risen by 18%for in steel concrete reinforcing bar, and 10% in thermal insulation products.

These price increases are the result of the perfect storm made up of a number of fronts.

The impact of Covid-19 on supply chains is well documented.  As factories across the globe closed or reduced output, there has been the the inevitable reduction in availability of construction materials.  To compensate for this, many purchasing departments have increased orders to keep their stock levels up.  This creates further pressure on the supply chain with lead times running to 2-6 months for some imported construction materials.

Price pressure from the retail sector is also causing the price of construction materials to rise.  After a year of government furlough schemes, and not much else to spend money on, there is an increase in the money supply.  This in turn can lead to price increases (the dreaded inflation) as more people have more money competing for fewer goods.  Take a trip down to your local DIY store and you will most likely feel it in your pocket if you're building some decking, or doing some form of home renovation. 

Of all the materials used in UK construction projects approximately 60% comes from the EU, according to the Construction Leadership Council.  Following Brexit, this has led to some delays at ports which squeezes the supply chain.  In addition, the need to navigate Covid-19 restrictions across Europe has challenged logistics.

More recently, the blockage of the Suez Canal by the super container ship, Ever Given, has added to supply chain woes.

All this is to say that that the perfect storm has hit and construction firms across the UK are now having to weather it.

Will prices come down any time soon?

The honest answer is we don't know! Governments and central banks will likely fight to keep inflation low but price pressures are already being felt in the market.  Demand for construction materials will likely continue to increase as the government seeks to encourage house building and infrastructure projects post Brexit/Covid-19.

Eventually, the supply will catch up but how long this takes is crystal ball territory.

At RaiderVision, we are interested in your views on all this. Take our market survey and get entered into the competition for the chance to win £200 worth of Amazon vouchers.

What is the impact of material price increases on site security?

Clearly, as the value of your materials on site increase, the more likely it is that they become a target for theft.

As margins get squeezed on your construction project, it can be tempting to reduce security measures and hope for the best.  Unfortunately, this can often be a false economy.  In times where supply shortages are not an issue, the main downside of theft was the loss of material (and associated cost) but, it could be replaced.  However, in today's market, any lost materials may not be able to be replaced due to shortages.  This can result in project delays and in worst case scenarios liquidated damages.

Another thing to consider is your Health and Safety responsibilities.  Inn our experience, people who commit construction site crime are often prepared to take risks (such as climbing scaffold) to steal materials and tools.  As the "size of the prize" increases, so does the risks that criminals are prepared to take.  This in turn increases your risk to an accident on site.

In Conclusion

Material price rises and construction supplies shortages look like there are here to stay for 2021. We'd love to hear your views on it all if you fancy taking the survey and being in for a chance to win £200 worth of Amazon vouchers.  Make sure you take the appropriate measures to keep your site safe and reduce the risk of theft or injury.

Take a look at our ten tips to keep your site safe or get in touch to find out how the RaiderVision system can help protect property and reduce crime.