Research from The Pulse showed that a combination of factors including price increases, energy costs, and uncertainty about the war in Ukraine have all affected merchants’ confidence in the market. Many businesses and consumers are tightening their belts and acting more cautiously, which has the potential to affect the construction sector. Consumer confidence is at its lowest since 2008.

Construction output has slowed, particularly in the residential sector, with housebuilding experiencing its weakest rise in the last two years. This has been slightly offset by a more buoyant market for commercial and civil engineering.

Inflation is starting to have a greater impact on businesses with price volatility – largely driven by rising fuel and energy costs – being a major issue. Although builders’ merchants have seen the value of sales for building materials rising, it’s mainly been driven by price increases. For most, sales volume has risen at a much lower rate.

Future easing of COVID restrictions in China means we could see production of some materials return to more normal levels towards the end of the year. However, this should be viewed cautiously as shipping capacity may not be able to manage higher levels of demand, and rising fuel prices may have a knock-on effect on distribution.

The construction industry is responsible for 25% of the UK’s greenhouse gas emissions so, while energy conservation is advisable to help mitigate some of these rising fuel prices, we should also be prepared for more environmental legislation to encourage a cut in emissions. A recent report from the Environmental Audit Committee recommends more efficient methods of construction that utilise low-carbon building materials. Increasingly, new builds are being looked at with a ‘whole-life’ assessment, which takes account of emissions from the construction, maintenance and demolition of a building, and from the energy used in its day-to-day operation. We can, therefore, expect greater scrutiny from specifiers and contractors. With sustainable construction becoming a higher priority, branch staff need to be fully informed on a product’s performance characteristics and environmental credentials to make the right sale to the customer.

If sealants are incorrectly specified, for example, it can lead to many issues including reduced building performance and life expectancy, so they should always be proven for the intended purpose.