What material and labour costs have skyrocketed; and what can you do about it?!

If you hadn’t heard, a mix of COVID, Brexit and ridiculous demand for making our homes nicer places to spend time in 24/7 (God knows why…. 😉) has led to some critical material and labour shortages.

It is really frustrating when you’ve finally reached the point of deciding to do some work (having successfully negotiated it with your partner1) and you can’t even get tradesmen to quote, let alone book it in.

So many friends and clients that I speak to are fed up with waiting and being let down. But don’t shelve that project just yet!

I am going to give you a bit of insight into the main issues at the moment, what it means in real terms, and what you can do about it to stop your project becoming that nice idea that never happened.

What materials are in short supply?

Timber - The amount of wood available for construction is in short supply around the world. This includes timber for things like new scaffold boards which was causing an issue already in early 2020. So even if you can get the materials for your build, you may find yourself waiting a while for the site equipment to build it as they are stuck on other sites in delay.

Timber is the third most imported material in the construction industry, with 80% of the softwood used in building coming in from Europe. In new-build housing, 90% of the softwood comes from the continent.

“Production in traditional timber-growing countries easing off in 2020 vs. 2019. Sweden saw production down 7%, while in Finland production was 15% lower.”

The pandemic has meant closures and operational restrictions on sawmills so the lumber that is sitting in Europe at the moment cannot be processed into sawn timber…causing just a bit of a bottleneck.

Thanks Timber Trade Federation (TTF) and PBC today for those handy facts!

Despite this, the number of new homes being built is at its highest level in a decade. Locked-down families have also been funnelling the cash saved on holidays and commuting into improving their homes…and maybe a few of us have invested that furlough time and money too on expansion plans.

“ Already by March this year, timber had gone up more than 80% in six months according to Noble Francis, economics director at the Construction Products Association.”

As the big housebuilders fall over each other to catch up on the progress they missed during the lockdowns, it’s starting to look like the Hunger Games out there. They also have the buying power and storage facilities to stockpile the wood they need…cue Gollum.

“The cost of sawn wood up 16.6% in March 2021 compared to 12 months ago.”

The chief exec of TFF recently said that the current demand means that timber is being allocated as quickly as it is being produced and imported into the UK. Basically this means that the big boys are getting in there first and there is very little stock going to builders merchants and places where small jobbing builders can pick up what they need for your home reno work.

Framing, cladding and sheet materials for flooring or roof underlays and for carpentry (like MDF fitted or kitchens) is also in short supply.

If you’re worried, now is the time to invest in a new build - and take advantage of the benefits of buying off-plan to customise your house. Once you’re in, you can decorate and furnish your blank canvas with personality, without stressing about labour delays and rising material costs.

New builds should come with a warranty, but do make sure you are buying from a reputable builder to mitigate issues with latent defects as there is pressure in the industry at the moment to complete quickly.

Unfortunately, for those of us dying to renovate an existing property, there is a big chance that timber supply will remain awkward for a while beyond 2021, with softwood demand projected to continue to increase until 2025. So you may be paying a premium and waiting around to complete your work for a while yet.

Quotes and figures graciously paraphrased by yours truly from what TTF chief executive David Hopkins told Construction News

Cement - Cement was added to the list of shortages prepared by the Construction Leadership Council in April this year. Currently, bulk cement orders are almost back to normal (so good news if you were waiting for completion of your high rise flat), but supply of bagged cement is still struggling to come through.

This isn’t great news for homeowners trying to put in a raft foundation for their new garden office by the summer of 2021.

Things should regularise though over the next few months though according to the MPA* as most of the cement used in the UK is produced domestically. So do use the time to pre-order or book in a builder and get any Planning approvals you need in place as this process is also sluggish at the moment.

If you’re not sure how to go about this check out my earlier post on where to start with a project.

*Mineral Products Association

“In short; ok to plan an extension or garden room as concrete will be back on the shelves soon, but it’s probably worth putting off your post-modern Corbusian all concrete look masterpiece...at least for a while (unless money is no object).”

Steel - You may be thinking this is no issue as you’re not involved with high rise construction or ship building…until you want to go for that open plan look and take out a stud wall…or put in fancy new bi-folds. Ahhhh. Bummer.

The issue with steel is twofold - the shutdown in early 2020 meant there was a stop in production which became significant when the world’s contractors wanted to make up for lost time. Structural steelwork is also most often made to order, which makes buying ahead for projects tricky. Like with timber, working restrictions are still compromising how quickly suppliers can catch up.

And of course, people (except those in London who couldn’t wait to get out) taking the ‘don’t move, improve!’ attitude puts an extra strain on the usual supply chain and there has been a bit of panic buying of the standard size stuff.

“In May 2021, Construction News reported that British Steel (the only UK manufacturer of structural steel sections) stopped taking orders on structural steel sections due to extreme demand.”

So what is actually impacted by steel shortages? Steel sections are used for everything from angled lintels (that hold the bricks up above your windows and doors) to supporting beams (horizontal) and columns (vertical) that take the weight and frame your building.

Steel is also used for the rods that reinforce concrete (including floor slabs & foundations), mesh and welded wire fabrics used for fencing and security hoarding (just as well festivals have been postponed perhaps!), and square sections for window framing and gates. It is ALSO used for the corrugated sheets found on agricultural and commercial roofing.

The alternative to timber framed internal walls and partitions is using cold pressed steel sections…so with both in short supply at the moment that is tricky if you need some new walls putting up.

To boot, electrical contractors are also complaining about a shortage in cable steel. So it’s a material that affects a lot. Ergh.

“According to BEIS*, the price of fabricated structural steel was up 17.6% by March 2021 compared to the previous year.”

So what to do? Well, for your interior project, upcycle and look for feature gems at vintage stores and visit salvage yards for glazing and doors that you can refurbish and repurpose.

Build your project around your finds, and look to adapt what you have rather than extending (for now). If you do want to extend or add new walls, stick to standard sizes to stand the best chance of getting what you need quicker. Also check whether your builder has a stockpile before you appoint them, or whether they are reliant on buying ‘just in time’ (but always check materials meet the required certifications!).

*Department for Business, Energy & Industrial Strategy (BEIS)

What about actually getting (good) people to do the work?

Well, leaving the EU has caused a lot of foreign workers to leave -or (coupled with COVID-19 travel restrictions) stay away after a trip home.

Changes to customs rules immediately following Brexit also slowed imports of building materials and other goods, as border officials and truck drivers grapple with new paperwork.

In addition, the huge rise in demand for small and medium size contractors means that waiting lists for builders are unusually long.

We’re used to having to wait for good people, but now we are also waiting for those making hay whilst the sun shines - so keep an extra watchful eye out for cowboys and never pay huge sums upfront.

If you’re worried about getting proper and accurate quotes, grab my FREE getting quotes guidance & checklist below. ⬇️⬇️⬇️

Remember - builders are not enjoying having to increase the price of the job they quoted you for.

They have had an extremely challenging year with lockdown - and all they want now is to work and make up for it. But they can’t take the hit on the price hike for everyone or they’d go bust! The traditional model for contractors is to work on a fixed price model, but with prices changing every day many are revising their approach.

“The jobbing builder has traditionally gone into a merchant and said I want three of this and six of that; those days are gone.

The same was true for DIY shoppers who wanted to buy paving stones or fence panels. ”

— John Newcomb, chief executive of the Builders Merchants Federation (BMF)

This is not unreasonable, but if you’re worried about transparency, perhaps ask for an open book approach with a fixed monthly management fee for the duration of the project. And importantly, be prepared to be flexible and understanding with timescales - a lot of delays are not within their control.

“At the moment, builders are really struggling to recruit bricklayers, joiners and even general labourers.”

The best thing you can do is inform yourself and track the work you want to do, ask lots of questions and plot progress against your expectations.

I’ve created a Budget Planner with benchmark 2020/2021 costs and for all the things I could think of on a domestic refurb project; and a Programme Planner with step-by-step things to consider from organising initial ideas to walking back in through your new front door.