The Construction Leadership Council’s (CLC) Material Supply Chain Group’s latest report shows little change from preceding months, but the body has welcomed new government planning reforms.
However, the group does want to see further details and specific plans to boost housing and construction and stimulate key sectors of the industry.
Currently, there are good levels of product availability across the board, but this is a direct result of demand remaining subdued across most sectors.
The CLC wrote that it is difficult to see the market improving before the turn of the year, and suppliers have adjusted capacity to meet current demand.
Looking ahead, some members of the group expressed concern over suppliers’ ability to quickly increase output to meet any potential spike in demand. As stated in the last report (June 2024), the key to this is accurate forward forecasts and longer lead ordering times, the report said. Manufacturers can ramp up production in two to three months but require forward knowledge of orders to do so.
Concerns were also expressed about a shortage of labour, particularly in areas requiring new skills, such as the installation of heat pumps. The effect of these shortages are likely to be further exacerbated when construction activity increases.
The CLC will be campaigning for joint engagement with government. The group would like to have round table discussions with ministers, to identify touch points with government that need addressing, in order to plan effectively for the future.
