A variety of manufacturers of building supplies have announced they will be increasing prices due to increasing demand for building materials. Have you considered how this may affect your pipeline?

 

An example of this is in the recent announcement made by brick manufacturer Michelmersh who have announced they’ve increased prices by around 13.5%.

 

It’s important to recognise this building supplies price inflation when you’re quoting out for jobs, especially if those projects are due to start in a number of months. 

 

Whilst buying the best quality products the market has to offer, we’re committed to keeping down the costs of the building supplies we sell to our clients, many of whom are conscious of the effects demand is having on the prices of building products.

 

Of the increase in the price of Michelmersh’s brick, Chairman Eric Gadsden said: “A generational oversupply of bricks has come to an end and the market is now reliant on increasing levels of imports.

 

“The current environment brings a new set of challenges with our stocks, and industry stocks, at an all-time low.

 

“Bricks are no longer immediately available on demand but we have successfully managed our customers’ requirements.”

 

Although high demand for construction supplies is driving up the costs of some building products, we anticipate economies of scale will facilitate better prices for a number of products as the market become more competitive, it's therefore becoming more important than ever to review the costs of building products whilst producing quotes.