Faced with backlogs , shortages , stockpiling , delays and BREXIT , the global construction industry is facing rising prices for procuring vital materials , like timber
MAR 2020
SEP 2020
NOV 2021 +
COVID-19
Despite key workers globally remaining operational during lockdowns , the surge in home renovations and restrictive production capabilities resulted in materials shortages and the inability to meet demand . In the US alone , the price of lumber per thousand board feet rose from US $ 400 in February 2020 , to an all-time high of over US $ 1,600 in May 2020 . Prices have since fallen to around US $ 800 . RICS commented : “ Despite the overall optimism , rising material costs have been highlighted [...] this trend is being seen across the globe , with the pressures intensifying going forward due to bottlenecks in the supply chain and an upsurge in demand continuing to drive costs higher .”
Skills Shortages
What appears to have started as an issue for the UK , has spread to other countries in Europe . Currently the UK has an estimated shortage of 100,000 HGV drivers , with a backlog of around 54,000 waiting to take their tests . Meanwhile Poland has a shortage of 124,000 ; Germany between 45,000 and 60,000 ; France 43,000 ; Italy 15,000 ; Spain 15,000 ; and Scandinavia 10,000 .
Prices Decreasing ?
While the US is starting to see a decline in timber prices , Japan continues to face lumber shortages and high prices , alongside the UK , Europe , Australia and Russia . Will the industry recover ? Time will tell , but current predictions expect the shortages and high prices to continue well into 2023 .
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