A survey of construction manufacturers has shown an increase in cost inflation across the industry, meaning building contractors must expect higher quotes from their supply chain.
The cost of energy and materials rose repeatedly in 2010, and continued into the New Year. Urban Space Products alerted customers in December that steel prices were increasing in January, and pressed for orders to be placed prior to the increases in order to make savings.
Installations and deliveries were also hit, with 97% of manufacturers surveyed stating that fuel prices had risen dramatically in the last 12 months.
The Construction Products Association, who conducted the survey, forecasts that output will fall by 2% in 2011, due to cuts to the public sector.
This is making companies like USP find way to be more competitive, despite the rising costs.