This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Soaring material prices impacting on FM budgets

31 July 2017

With the rising price of materials highlighted by the Federation of Master Builders (FMB), concern has been expressed for the impact this will have on FM budgets.

Costs have continued to increase since the depreciation of sterling following the results of the UK's decision to leave the EU in June 2016.

The FMB survey revealed that 32% of SMEs have seen this impact on profit margins and more than 10% have reported losses on building projects as a result.

A further 22% have had to pass on material price increases to clients.

FMB conducted its survey among construction industry SME businesses, also asking which materials have increased the most.

Cost increases have been seen among the following:
1. Timber
2. Insulation
3. Bricks
4. Blocks
5. Windows
6. Plasterboard and slate
7. Boilers and radiators
8. Porcelain products

As a result of the survey, FMs are now advised to factor in added cost when planning budgets and revenue allocation.

A number of FMs have informed PFM that they will plan their budget allocation for the next 12 months in September, with many now having to factor in price increases in various areas.

Print this page | E-mail this page


Article image Carillion paid price for 'chasing revenue at the expense of profit'

Thoughts on the demise of Carillion have been shared by the PFM Editorial Advisory Board (EAB) during its latest meeting yesterday afternoon.Full Story...

Article image Nigel Taylor: Who is the Man behind Carillion Services?

Clear, engaging and collaborative – that’s how Carillion Services MD Nigel Taylor, a lifelong Leeds United supporter – describes his management style. In this exclusive interview, PFM got a glimpse of the private man behind the business image.Full Story...

Sodexo, Carillion and Mitie top Magenta’s social media FM ranking

Troubled FM businesses feature in top government suppliers' list

Carillion sells three PPPs to LS Trillium