We have seen an unprecedented rise in the costs of construction materials throughout 2022. High European dependency on Russian fuels (gas & oil) has led to significant increases in the market. Increased gas costs have led to increased production costs and thus increased finished material costs. Electricity has seen a significant increase from October 2020 to October 2022 which has impacted the running costs onsite.

As we look forward into 2023, there is still an expectation of some level of volatility with price increases expected in January for concrete, insulation and plasterboard. In a fight against inflation, contractors are attempting to mitigate these impacts by looking further afield for their supply chain across Western and Eastern Europe, specifically for cladding, glazing, brick and other high value items.

At Cumming Group we monitor the market to provide our clients with the latest intel, providing sound evidence based advice and developing strategies to mitigate the increases, minimise risk and maximise value.