The cost of materials for British construction companies has risen in recent months — and could climb further as Brexit negotiations continue to pressure the pound and increase the cost of imported goods. But it’s not all doom and gloom for the construction industry.
The Bad News…
Recent findings from manufacturer EEF highlight the challenge in their survey of 281 senior executives. The report stated: “Companies have experienced a surge in input costs, which soared to multiyear highs. As the weak pound is expected to prevail, cost pressures will gradually feed through into higher consumer prices in the year ahead.”
Additional research by the Federation of Master Builders found that 70% of 232 UK construction firms reported rising material prices following the pound’s fall since the Brexit vote. A further 25% of all materials used by the UK construction industry are imported — a figure that underlines the sector’s exposure to currency fluctuations.
Rebecca Larkin, Senior Economist at the CPA, commented: “The impact of Brexit on the construction industry is, as yet, unclear, but it is unlikely that this year will be as buoyant as last unless the government provides greater certainty and the industry can manage cost pressures.”
The Good News…
Despite concerns over material costs and trade deal uncertainties, many UK construction companies remain optimistic — reporting positive sales forecasts and continued investment in productivity improvements.
There’s also a silver lining: Cotterill Civils has not increased prices on our leading solutions for the construction and agricultural sectors. Our products remain competitively priced to help customers get the best possible value.
Where to Go for Expert Advice
As one of the UK’s leading suppliers of drainage and civil solutions for both the construction and agricultural sectors, we specialise in:
- Sewage treatment installations
- Rainwater harvesting systems
- Stormwater attenuation solutions
- Farm and industrial building construction
- Comprehensive civil engineering projects
For advice or quotes, please contact our team on 0121 351 3230.