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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.

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