The Construction Leadership Council’s Material Supply Chain Group has warned that surging energy and transport costs threaten to push up prices and destabilise parts of the UK building sector, even as immediate product availability remains broadly steady.
According to The Construction Index, co-chairs John Newcomb, chief executive of the Builders Merchants Federation, and Peter Caplehorn, chief executive of the Construction Products Association, said output fell by 2% in the ...
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three months to 31 January 2026, the fourth month of consecutive decline. They reported modest growth in infrastructure, energy-efficiency work and some commercial and industrial schemes, but said these gains have not compensated for weak new-build housing and residential repair, maintenance and improvement activity.
The group identified rapidly rising energy bills as the principal near-term pressure on material prices, noting that manufacturers of energy-intensive products and those using oil-derived feedstocks are already facing marked cost increases. Some producers may be shielded in the medium term by hedged energy contracts, but the CLC warned transport costs are proving harder to predict and pass through the supply chain.
Merchants, housebuilders and contractors have expressed concern at what they describe as sudden surcharges with limited justification and short notice. The group highlighted that buyers of mechanical services are seeing higher copper prices, while steel quotations are moving so quickly some firms are unable to obtain reliable fixed quotes.
While most construction products used in the UK are sourced domestically or from European suppliers, the CLC said supply risk is concentrated for particular imported lines. It cited disruptions affecting certain wall and floor tiles, and some exterior porcelain and sandstone from India, where rising fuel costs have hampered exports.
Industry observers say the risk is sharpened by lower production capacity after two years of subdued demand. Roofing manufacturers have reported delivery times extending for some tile profiles, with lead times of up to three months from major concrete roof-tile producers, according to Roofing Today. Builders Merchants News has warned that manufacturers who scaled back output and stock to match softer orders could struggle to meet any rapid uplift in demand, creating the potential for shortages if housing and infrastructure programmes accelerate.
The CLC urged greater collaboration across the supply chain, including early forecasting and sharing of requirements, to avoid reactive price passes and supply bottlenecks. The group said many manufacturers are already attempting a measured approach when passing on cost pressures, offering clearer explanations and reasonable lead times where increases are necessary.
Similar warnings about the economic effects of rising fuel prices have been issued beyond the UK. The Lagos Chamber of Commerce and Industry and the Abuja Chamber of Commerce and Industry have both cautioned that recent fuel price hikes in Nigeria risk broader business disruption and could exacerbate inflationary pressures, illustrating how energy cost shocks can ripple through construction and other sectors.
The Material Supply Chain Group’s statement called on industry participants to work together to manage volatility and to give as much advance notice as possible of changes in demand and cost so that merchants, housebuilders and contractors can plan procurement and mitigate the risk of disruptive surcharges.
Source: Noah Wire Services
