Rapid increases in the price of steel and other raw materials are set to affect supplies to the construction industry. Trade body BEAMA Installation has predicted serious implications for contractors in the UK.

Steel producers began to implement a series of increases in January 2004 which amounted to 6-8% for strip products.

Global demand for steel-based products is predicted to rise to 5 or 6% for five years, but it is thought that the industry will struggle to increase output by 2% per annum. Several factors are cited as affecting the steel prices, principally a doubling in demand from China over the past ten years and rising fuel and shipping costs.

BEAMA Installation’s steel products group is urging contractors, specifiers and wholesalers to be aware of the difficulties that manufacturers are encountering.

Source

Electrical and Mechanical Contractor