Construction activity remains strong however, skyrocketing price of building materials continues to dampen construction’s economic recovery and according to claims by the Federation of Master Builders, it is disproportionately impacting on the industry’s smallest firms.
The latest construction PMI data revealed that suppliers’ delivery times lengthened sharply in May, with the downturn in vendor performance the second-steepest since the survey began, exceeded only by that seen in April 2020. Stretched supply chains and steep rises in raw material prices contributed to a rapid increase in average cost burdens facing contractors. The overall rate of input price inflation was the highest in just over 24 years of data collection.
Brian Berry, chief executive of the Federation of Master Builders, said: “Rising material prices are continuing to limit the ability of local builders to build back better from the pandemic. It’s incredibly worrying to hear that the overall rate of input price inflation was the highest on record.
“This is consistent with FMB State of Trade data that shows 93% of builders reported material price increases in Q1 of this year. Against the backdrop of high levels of inquiries for building work, it’s imperative that smaller businesses have the same access to materials as the larger firms during these difficult times.”