A perfect storm continues to hamper availability of materials and labour across the sector in the UK

Commenting on today’s IHS Markit / CIPS UK Construction PMI (issued 6 Sept 2021), Jan Crosby, head of infrastructure, building and construction at KPMG UK, said:

“A perfect storm continues to hamper the availability of materials and labour across the sector in the UK. The industry is telling us that this is one of their biggest concerns right now, and that supply chain delays are preventing them from taking on new work to grow their construction businesses at a time when the economy is bouncing back.

“The scale of HS2 is acting as a magnet for certain elements of the supply chain, including heavy equipment and cement; the global demand for steel and timber is pushing up prices and lead times for most goods can take much longer than normal. Additionally, labour in the south has been impacted by Brexit and HGV drivers are in high demand.

“The good news is that demand remains high across most markets – particularly residential and infrastructure. Rising end prices for houses and real estate are often fully mitigating the impact of the cost increases – at least in the private sector. However, availability will act as a break on how much the industry can respond to the high demand.  

“This month has again seen slow growth for the sector. The ongoing lorry driver shortages and lack of stock mean these supply vs demand worries aren’t going away quickly.”

-ends-

Notes to Editors
For media enquiries please contact:

Tanya Holden, Deputy Head of Media Relations
E: tanya.holden@kpmg.co.uk
T: +447874888656

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.