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Gloucestershire Business News

Cement price rise to hit construction

The construction industry faces a shockwave as cement prices go through the roof.

An article in Constuction Enquirer says that contractors are reporting an industry-wide hike of 16% by the end of the year, taking the annual rise to an unprecedented 30%.

This is bound to have a knock-on effect for small and medium sized building firms, especially where they may have priced ahead for a job.

Small rises of 3-5% can be absorbed but an increase on this scale is likely to cause severe difficulties.

According to one source quoted in the article 'all the key producers are putting up prices by similar amounts'.

Another contractor told the publication that earlier this year producers were rationing supplies after 'seemingly all shutting down kilns around the same time for maintenance'.

He added that it would 'push people away from cement to cement-free alternatives'. While these were currently much more expensive the price increases would close the gap.

Brian Berry, Chief Executive of Federation of Master Builders, said: "Prices for products are currently very turbulent, with costs staying stable for only 24 hours in some cases. Cement prices have been particularly volatile which impacts all areas of work for small local builders. 97% of FMB members have experienced increased prices across all materials and expect this to continue into the winter months.

"This issue has also hit consumers with 78% of SME builders having had to increase prices to cover their costs. Going forward builders are having to offer new style contracts moving away from fixed terms costs to ones which are more flexible to take account of ever-increasing material costs."

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