Inflation in raw materials will continue to push prices up during 2021, Construction News reports. A new survey by the Construction Products Association (CPA), The State of Trade Survey, shows that for the first quarter of 2021, housebuilding is leading the recovery for the building sector, but material shortages will lead to price rises for the next year.

There are currently global supply issues for construction materials including steel, timber, PVC and roof tiles. The survey found that 90% of heavy side and 88% of light side manufacturers reported a rise in the cost of materials during quarter one.

Heavy side products are structural materials such as cement and steel. Light side products are typically fittings and services, such as insulation and glazing. The survey also reveals an upturn in demand, with activity rising above pre-pandemic levels. 41% of heavy side manufacturers and 46% of light side manufacturers report an increase in sales.

CPA senior economist Rebecca Larkin said: “Encouragingly, manufacturers expect continued growth over the next year. This risks being held back by bottlenecks in the global supply of raw materials, however, notably in categories where a high proportion is dependent on imports.”

“Inevitably, rises in input prices have followed and almost all manufacturers expect this inflationary pressure to persist over the next 12 months,” Larkin added. She also said the increase in demand was largely driven by the housing market, as the V-shaped recovery takes shape.

Demand in the housing sector has also been inflated by the stamp duty holiday and the Help to Buy scheme, Larkin said. The extension of the generous UK furlough scheme through to September, and the forging ahead with large-scale infrastructure projects, has also helped to drive demand and confidence levels in the UK construction industry.

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