{"id":606724,"date":"2023-02-10T22:54:32","date_gmt":"2023-02-11T04:54:32","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/02\/10\/challenging-times-far-from-over-as-commodity-prices-to-stay-high\/"},"modified":"2023-02-10T22:54:32","modified_gmt":"2023-02-11T04:54:32","slug":"challenging-times-far-from-over-as-commodity-prices-to-stay-high","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/02\/10\/challenging-times-far-from-over-as-commodity-prices-to-stay-high\/","title":{"rendered":"Challenging times \u2018far from over\u2019 as commodity prices to stay high"},"content":{"rendered":"
\n

\"Michael_Riordan.jpg\" <\/p>\n

Michael Riordan<\/p>\n

\n

Rampant construction commodity prices show little sign of easing, according to a new analysis.<\/span><\/p>\n

Construction consultancy Linesight says in a new report that although the across-the-board hyperinflation experienced last year is now over, prices are set to remain high, driven by the cost of energy and a lack of required skills in the worldwide supply chain.<\/span><\/p>\n

The UK-focused analysis highlights the cost of bricks and plasterboard, which are predicted to increase by 11.5 per cent and 10 per cent respectively this quarter as a result of high production costs.<\/span><\/p>\n

Strong demand for concrete and cement combined with high energy costs will keep prices elevated, it said, with a 1 per cent increase this quarter forecast for both materials, although a decline in construction activity is predicted to bring down costs in the following quarters.<\/span><\/p>\n

Despite a downward trend for steel at the end of 2022, the price of key raw materials combined with energy costs and their impact on production are set to keep prices high.<\/span><\/p>\n

The outlook for copper prices is mixed as, despite increases in the fourth quarter of last year, concerns over global recession persist.<\/span><\/p>\n

However, the report notes that lumber prices are continuing to fall, with a 1 per cent reduction expected for this quarter due to healthy stock levels and an anticipated drop in construction work.<\/span><\/p>\n

Although supply chain infrastructure is now stabilising \u2013 partly thanks to China\u2019s relaxation of its zero-COVID policy \u2013 shortages of specialist skills within the construction sector are causing ongoing disruption, it adds.<\/span><\/p>\n

Michael Riordan, managing director of Linesight UK, said that with a 1.9 per cent contraction predicted for the UK construction industry this year, the challenging times are \u201cfar from over\u201d.<\/span><\/p>\n

\u201cAlthough supply chains may be up and running at pre-pandemic levels, over the coming year, the construction sector will still be faced with rising interest rates, high energy prices, a scarcity of skilled labour and unreliable global conditions,\u201d he said.<\/span><\/p>\n

A key strategy for minimising risk would be relationship-based supply chain management, Riordan added.<\/span><\/p>\n

Earlier this week, an<\/span> analysis from the Construction Products Association<\/span><\/a> found that demand for heavy materials such as steel, bricks and timber had continued to fall in response to a slowdown in the new-build sector.<\/span><\/p>\n

In contrast, light-side manufacturers recorded a 10th straight quarter of rising product sales.<\/span><\/p>\n<\/p><\/div>\n

Related articles<\/h3>\n<\/p><\/div>\n

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\n Kerry Lorimer<\/p>\n","protected":false},"excerpt":{"rendered":"

Michael Riordan Rampant construction commodity prices show little sign of easing, according to a new analysis. Construction consultancy Linesight says in a new report that although the across-the-board hyperinflation experienced last year is now over, prices are set to remain high, driven by the cost of energy and a lack of required skills in the<\/p>\n","protected":false},"author":1,"featured_media":606725,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38079,849],"tags":[],"class_list":{"0":"post-606724","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-challenging","8":"category-times"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/606724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=606724"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/606724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/606725"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=606724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=606724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=606724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}