Unique teams up with Leicester City in the Community for outreach project

Pictured: Leicester City Football Club legend and former captain, Steve Walsh (left),

and Gary Burrows, senior project manager at Unique (right), at the handover of the new French doors installed at Gorse Hill City Farm.

Award-winning fabricator of PVCu and aluminium windows, doors and curtain walling, Unique Window Systems has lent its support to an outreach project organised by Leicester City in the Community (LCitC).

The business donated two sets of white PVCu French doors towards a project which involved the construction of a new classroom at Gorse Hill City Farm.

Unique’s installer team, who typically work on high volume projects for large commercial clients, also carried out the installation of the doors free of charge.

Located on a 20-acre site on the edge of Leicester city centre, Gorse Hill City Farm is a working farm and visitor attraction.

Operating as a registered charity and home to over 100 animals, it enables visitors, and children in particular, to learn more about farming, conservation, and animal welfare in a hands-on, fun, and interactive way.

One of the official charities of Leicester City Football Club (LCFC), LCitC harnesses the power of football and LCFC to inspire individuals to achieve their full potential.

Committed to ensuring everyone it engages with receives the support they need, either directly or through a network of partners, LCitC’s core activities entail education, community outreach and targeted interventions with football and inclusivity serving as underlying themes.

The French doors donated by Unique are from a range able to accommodate widths of up to two metres and that is available in seven different colours and finishes.

Ideal for maximising levels of natural light and for opening up spaces such as conservatories, the range also offers a choice of frame styles including straight edged, chamfered and ovolo.

Emma Lowry, senior manager (education) at LCitC, said:

“Every year, Leicester City in the Community, delivers numerous projects which are focused on making a positive difference to local good causes.

“We can only do this with the help of similarly community-minded individuals and organisations like Unique Window Systems.

“On behalf of everyone at Leicester City in the Community, Gorse Hill City Farm and all those people who will ultimately benefit from the new classroom, I’d like to thank the business for its generous support.”

Mir Patel, senior manager at Unique Window Systems, added:

“Unique Window Systems has a strong sense of corporate citizenship, and we recognise the need for all businesses, ours included, to leave a lasting and positive legacy on society.

“As one of Leicester’s major employers, we also feel it’s important to give something back to the local communities where many of our team and their families live and spend their free time.”

 

 

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Aluminium Scrap: A Promising Technology

Post-consumer recycled aluminium scrap is transformed into new building materials

(Credit: Andrea Starr, Pacific Northwest National Laboratory)

Twisted aluminium mesh, broken bicycle frames and used car parts languishing in junkyards could gain new life as building structures such as door and window frames thanks to a new recycling technique.

Based on a patent-pending technology developed at the US Department of Energy’s Pacific Northwest National Laboratory (PNNL) in Washington state, the new process could reportedly provide energy savings of almost 90% when making aluminium building components.

“Strong yet lightweight aluminium parts are being deployed more often as building materials,” a PNNL announcement said. “But there’s a high energy and greenhouse gas emissions cost to mining and refining aluminium.”

According to the International Aluminium Institute, the production of 1 ton (0.9 tonnes) of primary aluminium emits an average of 17 tons (15.4 tonnes) of carbon dioxide into the atmosphere.

Rather than processing mined aluminium, new laboratory testing has reportedly shown that PNNL’s Shear Assisted Processing and Extrusion Process (ShAPE) process can transform 100% post-consumer scrap aluminium into usable extrusions that meet or exceed stringent ASTM standards for strength and flexibility for common building-grade alloys.

“The ShAPE technology unlocks the possibility of creating circularity in aluminium scrap markets, thus reducing dependency on imported primary aluminium and the massive amounts of energy associated with its production,” the announcement said.

The manufacturing process deforms scrap aluminium bricks or rod-shaped billets using high shear forces to ‘pulverise’ impurities in scrap aluminium into tiny particles, uniformly dispersing them within the aluminium microstructure.

The dispersion eliminates microscopic iron clumps that can generate microfractures in recycled aluminium products manufactured using conventional methods, the PNNL team said.

ShAPE aluminium extrusion could provide considerable energy savings, the announcement said, by eliminating the need to dilute impurities found in recycled aluminium with 25-40% newly mined aluminium before processing.

“The ShAPE manufacturing process conserves energy and eliminates greenhouse gas emissions on several fronts,” said PNNL chief scientist Scott Whalen, who led the research. “First, we avoid the need to add primary aluminium. Then, we eliminate the need for what is called homogenisation of the billet material, a six- to 24-hour heat treatment near 500°C prior to extrusion.”

He added: “With approximately 55% of the global aluminium extrusion market servicing the building and construction industry, the evolution of ShAPE to include aluminium recycling for building structures is an enormous opportunity for decarbonising the built environment.

“We are finding that the unique microstructures within the metal are more tolerant to impurities than previously thought. This enables us to reach even deeper into the aluminium scrap market while maintaining material performance.”

Founded by entrepreneur Eric Donsky, manufacturing start-up Atomic13 aims to commercialise the technology and create custom-extruded parts for building and consumer products.

“ShAPE technology enables companies like Atomic13 to produce aluminium extrusions made from 100% post-consumer scrap with 90% lower carbon,” Donsky said. “At the same time, the low feedstock costs result in lower costs for consumers. We look forward to continuing to work with PNNL engineers to advance this promising technology.”

Source: I.meche

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Tall and Green, London’s Newest Skyscraper

Set to rival The Shard as the city’s joint tallest building

Updated designs for London’s newest skyscraper, set to rival The Shard as the city’s joint tallest building now includes more urban greening and improved sustainability.

Revised plans for One Undershaft include an elevated podium garden on the 11th floor and what would be London’s highest viewing platform.

The tower originally received planning approval in 2016, but developer Perennial Group and development manager Stanhope had to resubmit plans following changes made as a result of the decline in office work after the Covid-19 pandemic.

Under the new plans, designed by Eric Parry Architects the building will now measure out to 309.6 metres, with 74 floors, making it London’s joint-tallest building.

The planning application outlines “extensive publicly accessible spaces” in an effort to create a building “that is truly open and accessible to all.”

Plans also include several restaurants and “flexible cultural spaces”, with a public viewing gallery situated at the top and two floors of “education spaces” curated by the Museum of London.

Original plans included a “cross-bracing” pattern on the outside of the building, earning it the nickname The Trellis. The new plans show this pattern has been removed- leaving the building without a nickname.

Eric Parry Architects say the new revised plans afforded them the opportunity to “reconsidered their approach,” and the new proposal now delivers a “more wellbeing-led commercial space with high-quality external spaces, public open spaces, improved sustainability and a cultural and creative offer.

“The revised proposals will enable us to deliver a more sustainable building with enhanced urban greening.”

Main construction is pencilled to commence in 2026, with a 2029 expected completion date.

 

Source: Pro Landscaper

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Multimillion-pound restoration

New Warehouse roof and Gantry (Image credit: The Board of Trustees of the Science Museum)

Work has begun on a grade II-listed building at Manchester’s Science and Industry Museum, replacing a historic roof the size of two Olympic swimming pools.

The New Warehouse, which is more than 140 years old, is the next building to undergo essential conservation work.

It is part of a multimillion-pound restoration programme taking place across the Science and Industry Museum’s site.

Scaffolding will be erected around the New Warehouse this winter as part of the museum’s current £14.2m worth of national capital funding by the Department of Culture, Media and Sport (DCMS) to complete urgent repairs.

Originally built in the 1880s to support the expansion of Liverpool Road Station, the building provided essential goods storage as the station grew into a hub of 19th century industry.

Now it houses the main museum entrance, three permanent galleries (Revolution Manchester, Textiles Gallery and Experiment), three changing exhibition spaces, a café, shop and conference space, spread across three floors.

Manchester-based architects Buttress, who specialise in restoring listed and historic buildings, will work on the scheme.

Sally MacDonald, director of the Science and Industry Museum said: “We are delighted that the next stage of the site’s multi-million-pound restoration project is underway. This marks an exciting moment as we carry out vital repairs to our main museum building, including a brand-new roof.

“Whilst this repair work will bring some disruption to our site, including our largest scaffolding structure to date, the changes taking place now will mean visitors can enjoy our museum for years to come. We’ve always been a place of change and transformation and the work on New Warehouse is our next step to future-proof our historic site.”

 

source: Insider Media

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Lift Barriers to MMC and Deliver Affordable Housing

The only way that new ‘green’, efficient, safe housing can be built in the UK at the speed and scale required is if modern methods of construction (MMC) are more widely adopted in the housebuilding market, but the industry needs help to deliver the benefits MMC offer, experts have said.

Iain Gilbey and Graham Robinson of Pinsent Masons said that recommendations published by the House of Lords Built Environment Committee at the end of its parliamentary inquiry into MMC – a concept that covers a range of alternative off-site and on-site techniques – shine a light on issues that present a significant barrier to a thriving MMC industry.

Gilbey said:

“The UK government has a target of building 300,000 new homes in England each year, but the chronic skills and labour shortage and stagnant productivity that plagues the construction sector present a significant barrier to traditional housebuilding. A shift to off-site factory manufacturing of standardised building components, among other modern methods of construction, can not only help housebuilders realise huge improvements in productivity – it can also cut both embodied carbon and the amount of waste created by the construction industry and over time will lead to net zero homes.”

“However, as the Built Environment Committee has exposed, the MMC industry has faced problems in the UK, with a number of specialist providers of volumetric housing having gone out of business in recent years. For the benefits of MMC to be realised, the industry needs a long and stable pipeline of projects to make adopting MMC commercially viable – the level of investment needed to establish new factories and overhaul traditional construction business models is significant. The committee has highlighted reasons why this pipeline of work has not emerged in the way it might,” he said.

In a letter to housing secretary Michael Gove (18-page / 347KB PDF), chair of the Built Environment Committee, Lord Moylan, said the committee has “limited confidence that a coherent plan to encourage the use of MMC is in place”.

The committee highlighted the link between potential growth in the use of MMC and the government having “a clear strategy and a good understanding of how the industry operates” and called on the government to “publish its full strategy for MMC now or, if it requires updating, by no later than the end of March 2024”.

Currently, the government provides direct loans to some MMC companies and supports the adoption of MMC through the Affordable Homes Programme (AHP). The committee said, though, that the government should assess whether those measures are “the most effective way to support the establishment of new MMC companies and their research and development”.

The committee also identified a disconnect between the benefits MMC have to offer and the demand specialist MMC manufacturers are seeing for their services. It said the government should “undertake further research … to determine if there are genuine policy barriers to major housebuilders increasing their use of MMC”.

Among the other issues it raised, the committee said the government should update documents that support the housebuilding industry to assess its compliance with building safety regulations to make it easier for the industry to assess how MMC map to the regulatory requirements. It said the government also must do more to ensure insurers provide the warranties developers need when using MMC.

Pinsent Masons has consulted with over 100 industry leaders across the UK construction and house building industry to examine the practical barriers and potential solutions to adopting modern methods of construction. During this two-year process of collecting the views and evidence gathering, the team of experts at Pinsent Masons has been able to identify the main barriers to MMC and gain a granular view of the practical and legal problems facing the industry.

Together with industry bodies such as the Royal Institution of Chartered Surveyors, Constructing Excellent and Make UK Modular, and individual companies such as TopHat, Pinsent Masons wrote to housing secretary Michael Gove calling on government to do more “to unlock private investment to scale the adoption of modern methods of construction”.

One of the recommendations made in the letter was that stamp duty land tax (SDLT) be reduced for new homes built to an energy performance certificate (EPC) ‘A’ standard. Pinsent Masons has estimated that implementation of the measure would have minimal impact on public finances but bring real benefits by avoiding the need for “expensive retrofits” to millions of new homes that would not otherwise be ‘net zero’ compliant.

Another recommendation was to increase the percentage of new homes built using MMC under the AHP.

Ultimately, according to Robinson, a clear pipeline of projects and incentives are needed to support the industry in investing in a still very nascent approach to building the homes that Britain badly needs.

Robinson said:

“MMC is in all reality the only hope of achieving low carbon and net zero homes, at scale. MMC also allows new materials to be used – and new innovative approaches to be adopted – and has been shown to have the potential to significantly cut embodied carbon in built assets.”

“Creating digital twins and using technology to gather data on how homes are operated can promote long-term improvements to the efficiency of how we use our homes and to the way they are designed, while a platform approach to design also promotes the creation of a circular economy in the construction sector by enabling standardised components to be re-used. In the context of ever-more stringent building safety requirements and growing costs of disputes where defects are identified, developers also stand to see improvements in the quality of building products by moving away from making and installing them in a bespoke way on construction sites to adopting standardised production processes at off-site factories,” he added.

SOURCE: Pinsent Masons

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Government Must Invest £14b in Affordable Homes

 

The British Property Federation has called for 30,000 new build-to-rent homes to be constructed every year.

A group of some of the UK’s biggest construction companies has called on the next government to pour up to an extra £14 billion into affordable homes to ensure 145,000 are built every year.

The British Property Federation (BPF) has called on whoever wins the next election to also ensure that around 30,000 build-to-rent properties are constructed around the country.

Melanie Leech, the group’s chief executive, said:

“This year’s election comes at a critical time. The next government must not only set out a compelling vision for the future but will need to persuade the electorate that it can deliver.”

If the government works with industry it could unlock billions of pounds of investment from property companies, the BPF said as it unveiled its manifesto ahead of the election.

It said that £10 billion of new private capital could be unlocked if the government increased subsidies for affordable housing by £9-£14 billion, adding that this could help deliver 145,000 new affordable homes every year.

“As a country, we need to stimulate economic growth and become more productive,” Ms Leech said.

“We need to invest billions of pounds in our infrastructure, our housing is of insufficient quantity and quality, and town centres across the UK need reinvention.

“Looming over these issues is the existential challenge facing all of us – the need to decarbonise our society.”

The country is going to go to the polls some time this year, or maybe in January 2025, if the Prime Minister holds out until the very latest possible point.

The BPF asked for government action in other areas, including building stronger town centres and trying to help developers erect greener buildings.

It should include more resources for local planning officers, and a central planning system which helps local and regional authorities with massive projects, it added.

The group also asked for reform to the business rates system – the business equivalent of council tax.

A Department for Levelling Up, Housing & Communities spokesperson said:

“We need to build more affordable homes and that is why we continue to invest in our £11.5 billion Affordable Homes Programme, delivering tens of thousands of homes to buy and rent across the country.

“The Secretary of State recently set out new measures to speed up the planning system and we remain on track to deliver one million homes over this Parliament.

“Our long-term plan for housing will allow us to go even further, backed by £10 billion investment to boost supply and build the homes that local communities want and need.”

 

Source: The Standard

 

 

 

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Highlighting the Flood Risks in UK Housing

A recent analysis by Aviva, the UK’s largest home insurer, has unveiled concerning findings regarding the vulnerability of new homes in England to flooding.

The study reveals that 8% of new homes built in the last decade, equivalent to nearly 110,000 properties, are located in flood-prone areas, specifically in national flood zone three—representing the highest risk of flooding.

Despite the staggering numbers, the study shows that many residents of these new homes remain confident in their builders’ efforts to protect against flooding.

Approximately 60% of new home residents believe their home builders or developers have taken sufficient measures. However, only half of them (51%) are aware of specific measures implemented to reduce or prevent flooding.

The research also points out that even though some new homes face a higher risk of flooding, residents seem more aware of measures to enhance their properties’ resilience to climate impacts.

Forty-two percent claim to know what steps to take to improve resilience, and only 26% have not installed any resilient measures. This contrasts with 60% of residents in homes constructed before 2018 who have not taken such measures.

Jason Storah, CEO UK & Ireland General Insurance at Aviva, expressed concern over the situation. Storah noted that many newly-built homes have suffered floods within five years of construction, indicating potential issues with both location choice and construction standards.

The study also emphasises broader concerns about construction practices that could leave homeowners and tenants at risk from various climate events, including extreme weather conditions.

The report highlights that new homes built since 2009 are excluded from the Flood Re reinsurance scheme, designed to enhance the affordability and accessibility of flood insurance in high-risk areas.

Additionally, 59% of residents in homes built in the last five years believe their homes are at risk from flooding, compared to 41% of those in homes constructed before 2018.

Beyond flooding, climate concerns extend to other aspects, with 61% of new home residents expressing worry about the impact of heat on their homes, and 62% concerned about storms.

Despite these concerns, Aviva emphasises the need for collective action to address climate-related risks in construction, advocating for climate-ready housing that can withstand the multiple impacts of climate change.

Storah concluded by underlining the importance of strengthening rules to prevent construction in current and potential flood zones.

For areas where this is challenging, he suggests making flood resilience mandatory in planning rules from the outset to better protect homeowners and tenants from the devastating consequences of extreme weather events.

Source: Reinsurance News

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SIKA PRESENTS CHEQUE FOR £26,366 TO LEUKAEMIA CARE

Sika is delighted to have presented the Leukaemia Care Charity with a cheque for £26,366 at their Preston office this week.

Having raised funds through the annual Sika Cycle Charity Event, Mark Gatrell and Andrea Carbin, of Sika, was on hand to present the cheque on behalf of the company, Leukaemia Care, the UK’s leading leukaemia charity supporting anyone affected by a blood cancer by ensuring that they receive the right information, advice, and support. The event was held in memory of much loved and missed colleague and friend, Rebecca Clarkson, who sadly died with Leukaemia in 2023, and in attendance at the cheque handover were Rebecca’s Mother, Joy Hudson, and Rebecca’s fiancé Rob Woodard.

Rachel Brocklebank, Community and Corporate Fundraising Officer at Leukaemia Care said:

“We are absolutely thrilled to receive this generous donation from Sika and all of the riders at the Sika Cycle 2023, which will help fund support for people who have been diagnosed with a form of blood cancer. There are over 150 different blood cancers, and each year over 34,000 people are diagnosed.  The support we receive from companies like Sika can make a tremendous difference, helping us to support through diagnosis, treatment and beyond.”

Presenting the cheque to Leukaemia Care, Mark said:

“The work that the Leukaemia Care does is vital in supporting those people who are diagnosed.  I would like to say a big thank you to all Sika employees, suppliers and customers, who took part in the cycle charity event last September. Over 130 cyclists took part in a grueling ride and surpassed all expectations with the amount raised for the charity.”

The sponsored Sika Cycle 2023 event on 2nd September saw participants take on one of two challenging routes – lasting 50 and 100 miles – with courses weaving their way through the dramatic landscape of Aviemore in Scotland. The routes gave the riders unrivalled views of the Cairngorms National Park.

The fundraising is vital to the support of the Leukaemia Care Charity, for over 50 years, they have been dedicated to ensuring that everyone affected receives the best possible diagnosis, information, advice, treatment, and support.

 

For more information visit www.sika.co.uk/roofing or www.leukaemiacare.org.uk

 

 

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AUSTRAILIA: Airport Heading to Completion in 2025

The Hon Catherine King MP, Australia’s Minister for Infrastructure, Transport and Regional Development has visited Newcastle Airport for a tour of the terminal expansion construction site. Her visit marked six months since the A$250m (US$165m) redevelopment project began, with several key construction milestones having been met.

The old terminal building has been demolished. On the site of the new terminal, columns to support the new border agency have been installed, work on elevator pits and underground baggage handling tunnels is underway, and a massive concrete slab has been poured. In addition, construction of a new electrical substation is ongoing, which will enable the solar panels on the premium covered car park to be connected later in 2024 and ultimately power up to 30% of the airport’s electricity.

The federal government is contributing A$55m (US$35m) to the terminal expansion project. It has also provided A$66m (US$44m) to develop the airport’s airfield infrastructure.

The Newcastle Airport Terminal Expansion is expected to be completed in early 2025. The redevelopment includes upgrades to the terminal building and runway, a new premium covered parking garage, relocation of the short-stay parking garage and road works on Williamtown Drive. The new terminal building has been designed to achieve a 5-star Green Star rating.

The terminal has been designed by Cox Architecture. Construction Control was awarded the managing contract in April 2023. The project is anticipated to create more than 500 construction jobs throughout its life and will provide long-term benefits for the region. The terminal and runway upgrades are expected to create 4,410 jobs throughout the airport precinct after construction. Over the next 20 years, the upgrade and expansion of the runway and terminal have been projected to strengthen the region with approximately A$12.7bn (US$8.4bn) in economic activity.

Dr Peter Cock, CEO of Newcastle Airport, said,

“The transformative construction project is a critical part of delivering the airport the region deserves. Aviation is a catalyst for our economy’s growth and our region’s transition. Newcastle Airport is committed to growing the airport the region deserves and the airport our region deserves is one that supports industry, enables greater trade, helps create jobs well beyond tourism and is a vibrant part of the Hunter [region].

“The people of our region are passionately behind our airport and connecting the Hunter to the rest of the world. They continue to fly from Newcastle Airport to connect to our 13 direct destinations and on to 65 destinations around the world. We know that the more community support we receive, the closer we get to securing our next international fights. I want to sincerely thank our local member, Meryl Swanson, for her tireless efforts in advocating for our airport, together with our two shareholders Port Stephens Council and City of Newcastle, and finally our banking partner, Commonwealth Bank, for their ongoing support.”

Source: Passenger Terminal Today

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European Building Materials remaining Stubbornly High

The stubbornly high cost of some European building materials despite cheaper energy

It’s been a torrid time for Europe’s building materials producers, as construction projects have stalled significantly in the past couple of years. We think the worst will be over for them soon, but that’s not the whole story. Despite lower energy costs, input prices remain stubbornly high

Building material production levels will bottom out in 2024

We expect 2024 to be a year of transition for the building materials industry comprising of concrete, cement and bricks. In most European countries, production levels tumbled in the past couple of years; volumes are down by almost 15% in Spain and by nearly 25% in Belgium compared with the beginning of 2022. We believe that those volumes will not start to recover until 2025.

Should European interest rates start to come down, as we expect, and we see sustained higher wages, we’re likely to witness a turning point leading to more investments in new premises. However, building projects have a long lead time and the number of issued building permits was still declining in the third quarter of 2023. It will take some time before sales pick up

The beginning of the end of the decline

There are signs indicating that the worst is over. For instance, the confidence indicator for the EU construction sector is still negative but has slowly improved during the last few months of 2023. The confidence indicator for the building material sector has stopped decreasing. In addition, EU house prices rose again and increased in the third and fourth quarters of last year. This allows project developers to increase prices for new-build dwellings. Project plans that weren’t profitable due to higher building costs can now, at least in some cases, be lucrative again.

For example, local Dutch data support this changing trend. Project developers have seen their sales increase since summer 2023 after a period of decline, and sales of new homes are also on the rise again.

Building material industry more volatile than construction sector

The developments in the building material industry are closely related to the construction sector. Yet, this industry is more vulnerable to economic shocks. There are two reasons for this. Firstly, building material companies generally have higher fixed costs as they have invested more in machinery and factories than construction companies. This makes building material companies less agile; therefore, they have more difficulties scaling down during an economic downturn. Secondly, building materials deliver relatively more supplies for the construction of new buildings and, to a lesser extent, for renovation.

In general, the construction of new buildings is more volatile than renovation. Consequently, building material firms are now more negative than contractors as new building production faces larger obstacles than the renovation market. We saw the same developments during previous setbacks: building material companies were more pessimistic than construction companies at the beginning of the Covid-19 pandemic and the earlier financial crises.

Building material prices are decreasing

The prices of many building materials peaked during the summer of 2022 and have steadily fallen since. The cost of timber and plastic inputs for construction companies have particularly fallen back but they’re still higher than their pre-Covid levels. This is due to weakening demand as economic growth is sluggish and construction volumes, especially of new buildings, are declining. The diminished supply chain disruptions after Covid have also eased the upward price pressure. However, the current trade impact of attacks on merchant ships in the Red Sea is just one example of the continued vulnerability in supply chains and could threaten further new price increases.

Prices of concrete, cement and bricks remain sticky

Building materials such as concrete and cement peaked during the summer of 2023 and have only undergone a marginal decline. The cost of these materials has benefited from declining energy prices as these are very energy-intensive to produce. You might expect significant price drops here, too, not least because demand from contractors is declining as new construction volumes decrease. Yet, output prices of these building materials have only come down marginally, by less than 1% in November 2023 compared to half a year earlier. And here are two reasons why concrete, cement and brick prices remain sticky:

Other input prices shot up

As energy prices decreased, the costs of other materials, such as sand, stone and clay, rose significantly. Although these materials are abundant, environmental regulations can make quarrying difficult, for instance, which squeezes supply. The cost of these materials has increased by nearly 25% in the past two years. These price hikes are smaller than the energy price fluctuations, but they more or less offset the energy price reductions in the last year for building material production.

Clay and sand are more essential components for the production than energy. We estimate that they account for two-and-a-half times more than energy costs.

Concrete, cement and bricks’ prices are less vulnerable than timber and steel

Timber and steel prices react relatively quickly to changes in the market. If stocks of suppliers and wooden building materials increase, we can see price declines within just one to two months. The (global) market for these products is very competitive, so changing purchase prices are quickly passed on.

Building materials such as concrete and cement are heavy and voluminous. That’s why they’re often traded on relatively small local markets, resulting in less competition. This gives the suppliers of these products more market power, which usually results in both higher prices and lower price volatility. They do not have to pass on price reductions of raw materials or energy costs directly because of the relatively limited competition. As a result, the output prices of these products rise – and fall – at a slower rate compared to building materials such as wood, which are traded in more competitive markets.

Few producers expect price declines

It looks like the strong price movements in building materials has come to an end. Only a small majority of steel, concrete, cement and brick suppliers expect to lower their sales prices. However, for metals shipped in containers, the Red Sea conflict poses an upside risk. The price fluctuations for timber also seem to be over. On balance, less than 1% of EU timber companies planned to increase their prices in December 2023.

Source: ING

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