Timber, sheet materials, bagged cement, and roof tiles are heading the list of short supply materials. There has been a substantial increase in construction activity recently, which therefore has affected the availability of the materials putting extra pressure on the supply chain resulting in extended lead times and increased prices sharply.
The demand is so high that the manufacturers could not fulfil the volume for the first time in years. Undeniably the COVID-19 was also to blame as sawmills had to reduce staff capacity in some cases timber mills had to shut and these negatively resulted in the production volume. Even after reopening manufacturers are struggling to catch up as the enforced restrictions and increased demand held the production process back.
The haulage companies are also struggling with the high demand, shortage of drivers being off due to isolations rules has put a lot of pressure on the haulage companies, which resulted in the increased prices on transportation.
For instance, the OSB board, known as the most popular wood product used in structural applications, has been significantly affected by the price increase exceeding 80% since January 2020. In comparison, plywood panel prices have significantly increased, but less than half-seen in the OSB market.
Builders merchants are doing their best to notify their customers of ongoing significant price changes, trying where possible to advise their clients of price change by giving them enough notice so that clients might have a chance to stock up with building materials essentials.
Builders Merchants are in a desperate situation where they have to compete for available product availability as the manufacturers now become ‘price setters’ so the buyers have no choice but to agree to the price just to secure delivery of the product.
Likely there is a choice of sheathing materials, for instance, those builders that were using OSB can switch to cost-effective alternatives like plywood sheets. In this competitive market, the price will vary from merchant to merchant, so if for instance, the price of OSB board at your local timber merchant seems too high do not hesitate to call MGN Builders Merchants, these guys will do anything to fulfil your requirements and will work out the price that will match both parties, especially when you buy in bulk.
Unfortunately, not all the businesses will be able to survive this exceptionally challenging time like last-minute prices increase, where some builders merchants will be able to afford to delay their projects whereas others are at risk of shutting down as a result.
Despite the uncertainty, some businesses decided to pre-order materials, others included price increase clauses in their sales contracts whereas others decided to delay the projects until the situation goes back to normal.
MGN Builders Merchants is among the leading builders merchants that was also affected by the price increase but is managing this buoyant market extremely well. Here at MGN are committed to working closely with our customer and suppliers across the UK and Europe to ensure optimal stock levels and adequate prices, so be sure to find OSB board, bagged cement, and other products at the most competitive price, just browse their online store at www.mgnbm.co.uk or simply call and their extremely dedicated customer care team will be able to assist you. MGN Builders Merchants is the builders merchants store you can trust.