"In the last week or so, we've had communications from various manufacturing suppliers of ours saying they're looking at energy surcharges or they're looking at price increases to counteract energy rises. If you're very energy intensive then it's a short-term pricing issue and it happens very quickly in terms of the price hitting your business."
"I think our customers understand that energy prices are rising significantly, the cost price of the materials will be rising. I think if we can find a resolution to the conflict as quickly as possible, that's probably the best scenario in terms of managing pricing within our industry."
"He said it is a 'balancing act' for the company, and they will pass the price on to the consumer 'fairly,' but not to 'disadvantage ourselves.'"
Travis Perkins CEO Gavin Slark warns that construction material prices will increase as energy costs surge following Middle East conflict disruptions to oil and gas supplies. Rising wholesale energy prices are driving up fuel and transport costs across the construction sector. Manufacturing suppliers are implementing energy surcharges and price increases to offset rising energy expenses. The company faces a balancing act in passing costs to consumers fairly without disadvantaging itself. Customers are expected to understand the necessity of price increases due to elevated energy costs and material expenses. A resolution to the conflict would help manage pricing pressures within the industry. Building material sales declined 7.2% in January compared to the previous year.
#construction-materials-pricing #energy-cost-inflation #supply-chain-disruption #middle-east-conflict-impact #building-industry-economics
Read at London Business News | Londonlovesbusiness.com
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