The first quarter saw demand off to a slightly slower start than forecasted, with stocks remaining high across the supply chain following year end purchasing. However, as we moved through February and into March, purchase levels returned to forecasted volumes. The big question is whether this strong start to the year can be sustained, as the rising cost of inflation puts pressure on supply and demand.

Released on 21st April, the co-chairs of the Construction Leadership Council’s (CLC) Product  Availability Working Group made a joint statement updating the industry on the availability of construction materials and products. While overall product availability remains good, one of the main challenges that we continue to face is the rate at which energy and other costs are rising.

Last year, there were significant cost increases in raw materials and logistics. Now, like the rest of the sector, our costs are being impacted by the ongoing and rapid rise in energy inflation. Energy is a considerable portion of the cost to make our products and, with energy inflation continuing to soar, it is crucial that we work closely with our construction partner customers to ensure we remain resilient.

Looking ahead to Q2 and the rest of 2022, we will continue to seek to mitigate and absorb operating costs where possible and keep our pricing under review for the rest of this year in the face of this unprecedented volatility affecting all customers and the wider UK market. Crucially, we will keep our valued partners continually updated, understanding that even the smallest cost increases have a ripple effect along the whole supply chain.

While we needed to announce incremental price increases this year, we are dedicated to keeping our prices competitive for the long term. One of the ways we are doing this is by future-proofing our distribution network with a focus on delivering for our distribution partners in an efficient, secure, safe and sustainable way