The rising materials costs and shortages
Consultant says demand for products such as timber and structural steel will send tender prices heading north
Rising material costs because of increasing global demand and raw material shortages threaten to ramp up tender prices later this year, Turner & Townsend has warned.
Stockpiling, post-Brexit customs checks and a reduced availability of freight containers are all contributing to rising costs, the consultant said in its spring market intelligence report. Government figures say the cost of imported timber has gone up 30% in the year to January 2021.
Prices for imported sawn wood have increased by 30%, according to Department of Business Energy and Industrial Strategy’s (BEIS) figures covering the period from February 2020 to January 2021.
Gravel, sand, clays and kaolin along with imported plywood have seen the next sharpest rises over the same period, at close to 20%.
