NFRC Echoes Calls for Supply Chain Collaboration During Uncertain Period

NFRC echoes calls from the Construction Leadership Council’s (CLC) Material Supply Chain Group to share forecast and requirements data early, and foster a general culture of collaboration, during what is expected to be a difficult period due to the conflict in the Middle East.  

The group, which met on 24 March, discussed the impact on the supply chain of the conflict in the Middle East. The group’s co-chairs have since published a statement which can be read in full here.  

NFRC, which sits on the Material Supply Chain Group, supports the letters findings and recommendations, particularly the following passages: 

“As costs are passed along the supply chain, profit margins will be squeezed at every level. Such pressure then increases the contracting tiers of the supply chain, with SMEs being particularly vulnerable. The stability of supply-chain finances is, therefore, fast becoming an urgent issue that this Group is monitoring. 

“In the face of such challenges and uncertainty, members of the Group strongly advocate that now more than ever, the industry should use this time to plan, work collaboratively, and share forecasts and requirements early with everyone involved. Clear communication across the industry during these times is not only mutually beneficial but also vital for successful projects and a healthy, productive UK construction sector.” 

NFRC fully endorses these messages.  

Other insights from the meeting included: 

Imported Materials 

• Exterior porcelain and stone tile imports from India are disrupted due to a gas shortage affecting production 
• UK and European alternatives are available but will cost more 
• Shipping from the Far East has risen by 20–100%+ due to containers rerouting around the Cape, with longer delivery times as a result 

Costs & Pricing 

• Rising energy prices are directly pushing up the cost of materials with energy-intensive manufacturing processes 
• Diesel prices are up around 20%, increasing delivery and logistics costs across the board 
• Steel pricing is changing so rapidly that some suppliers are struggling to provide reliable quotes 

Also on the call was Marley Managing Director, and Member of the NFRC Regional Suppliers Group, Stuart Nicholson. He shared an update on concrete plain roof tiles.  

Concrete plain roof tiles are currently the only sector of domestic production experiencing an ongoing issue. They are expected to remain in short supply for the rest of the year, despite efforts by all three manufacturers to stabilise output by producing single colours for longer runs. 

If you have any concerns about increasing prices during this time, please contact [email protected]