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Mega Projects Swallow Up Supplies
Image Source: hs2.org.uk
HS2 and Hinckley Point add pressure on supply chains for valuable building materials which continues to impact smaller projects.
- HS2 expected to use 20m tonnes of concrete – as much as Britain produces in a year.
- Large contractors order and agree prices in advance, leaving smaller suppliers with nowhere to go for sand and cement.
- Chinese imports are falling behind after factory closures during Covid.
- The Highways Department (Government body) are ‘second in the queue’ to HS2 and Hinckley Point.
- HGV driver shortage and an explosion in demand is adding to the pressure.
- Double digit price rises expected to hit the construction industry next year as a result of the fuel crisis.
- British Merchants Federation (BMF) and Construction Products Association (CPA) set up a task force to help monitor the situation with the Government and the major building projects.
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