Comparing Q3 to Q4 2023, UK building material prices seem to have eased very slightly. Insight from AMA Research’s State of The Nation Report reveals that despite this slight improved price picture, the majority of respondents still see rising costs.
State of the Nation by AMA Research
This intelligence is gathered from The State of The Nation Report produced by AMA Research. Hundreds of industry experts are surveyed on an ongoing quarterly basis to create an accurate snapshot of today’s construction landscape; this data is then compiled to deliver you a free report with the latest high-level insight into into the UK built environment.
Sourcing Building Materials in Q3 2023
The overall ease of sourcing building materials improved from Q2-Q3 2023, however prices for both UK manufactured and imported building materials are seen to have risen, when comparing to Q2.
Compared to Q2, 68% of respondents reported imported product prices rising, and only 6% stated price decreases. This figure doesn’t differ much from UK manufactured building materials, as 62% of respondents reported prices increases too.
60% of respondents noticed price increases for distributor purchases, similarly 57% also reported higher prices for direct purchases. Respondents who noted higher prices for direct purchases in Q3 compared to Q2 were mostly operating in the Midlands, London and North East regions.
Sourcing Building Materials in Q4 2023
Whilst sourcing building materials remains problematic, the picture has slightly improved since Q3. In Q4 a balance of +9% found sourcing materials easier than in Q3, which had a balance figure of +1%.
The comparison between Q4 and Q3 suggests a slight decrease in the perceived price increase for both imported and UK-manufactured materials.
Richard Brace, Director at AMA Research stated “the reported surge in prices in Q3 and the continuation of this trend in Q4 is influenced by various economic and political factors, such as high energy prices feeding into production and transport costs, pressures on import prices especially from China, increasing labour costs, and continuing conflict in Ukraine and Middle East disrupting supply routes and prolonging oil price rises.”
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