Business

Materials’ price rise squeezes SME builders

Published

7 years ago

May 3, 2018

Price up: Building material price is harming SMEs

MORE THAN half of small building firms say that rising material prices are squeezing their margins and the same percentage have had to pass these price increases onto consumers, according to the latest research by the Federation of Master Builders (FMB).

Small and medium-sized (SME) building firms were asked which materials are in shortest supply and have the longest wait times. The average results were as follows (in order of longest to shortest wait times):

Bricks were in shortest supply with the longest reported wait time being more than one year;
Roof tiles were second with the longest reported wait time being up to six months;
Insulation was third with the longest reported wait time being up to four months;
Slate was fourth with the longest reported wait time being up to six months;
Windows were fifth with the longest reported wait time being more than one year;
Blocks were sixth with the longest reported wait time being up to four months;
Porcelain products were seventh with the longest reported wait time being more than one year;
Plasterboard was eighth with the longest reported wait time being up to two months;
Timber was ninth with the longest reported wait time being up to two months;
Boilers were tenth, with the longest reported wait time being more than one year.

SME building firms were also asked by what percentage different materials have increased over the past 12 months. On average, the following rises were reported:

Insulation increased by 16%;
Bricks increased by 9%;
Timber increased by 8%;
Roof tiles increased by 8%;
Slate increased by 8%;
Windows increased by 7%;
Blocks increased by 7%;
Plasterboard increased by 7%;
Boilers increased by 7%;
Porcelain products increased by 6%.

The impact of these material price increases includes:

More than half of construction SMEs (56%) have had their margins squeezed, this has gone up from one third (32%) reporting this in July 2017;
Half of firms (49%) have been forced to pass material price increases onto their clients, making building projects more expensive for consumers, this has gone up from less than one quarter (22%) reporting this in July 2017;
A third of firms (30%) have recommended that clients use alternative materials or products to those originally specified, this has gone up from one in ten reporting this in July 2017;
Nearly one fifth (17%) of builders report making losses on their building projects due to material price increases, this has gone up from one in ten reporting this in July 2017.

Brian Berry, Chief Executive of the FMB, said: “Material prices have rocketed over the past year. The reason for this could include the impact of the depreciation of sterling following the EU referendum still feeding through. High demand due to buoyant international markets could also be contributing to price increases. What’s particularly worrying is that when prices have increased mid-project, almost one fifth of builders have absorbed the increase and therefore made a loss. Also, if material price increases weren’t enough of a headache for building firms, they are also experiencing material shortages with wait times ticking up across a range of materials and products. Worst case scenarios include firms waiting for more than one year for a new order of bricks.”

Berry continued: “The rise in material prices is not just a problem for the country’s construction firms – it is also a problem for home owners. Half of firms have been forced to pass these price increases onto their clients, meaning building projects are becoming more and more expensive. This problem has worsened recently with more than twice as many firms passing material prices on to their clients now compared with nine months ago. What’s more, home owners should be prepared to have to use alternative materials or products to their first choice. One third of firms have recommended that their clients should use alternative materials or products to those originally specified. Now more than ever, it’s important that builders and their clients keep the lines of communication open in order to stay within time and within budget. Specified products or materials may need to be swapped for alternatives or clients will need to accept the additional cost.”

Berry concluded: “We are calling on builders merchants to give their customers as much advance warning of forthcoming material price increases or wait times as possible so that firms can warn their customers and plan ahead. We are also advising builders to price jobs and draft contracts with these material price rises in mind. The FMB’s latest State of Trade Survey shows that almost ninety per cent of building firms are expecting further rises over the next sixth months. This makes quoting for jobs difficult but if builders flag the issue to their client from the outset, and include a note in the contract that prices may be subject to increases, they shouldn’t be left short. What we don’t want is for the number of building firms making losses on projects to increase as this could result in firms going to the wall. A large number of collapsing construction companies will have a terrible knock-on effect in the wider economy.”

Business

Wales’ biggest Specsavers store opens in Haverfordwest

Published

3 days ago

December 16, 2024

Tom Sinclair

SPECSAVERS HAVERFORDWEST has relocated to a larger, state-of-the-art premises in the Riverside Shopping Centre, becoming the largest Specsavers store in Wales following a £1.2 million investment by local partners.

The grand opening of the new landmark store took place on Monday 16 December, with customers and local dignitaries, including several mayors, in attendance.

On arrival, guests were welcomed with performances from the Haverfordwest Male Voice Choir and local musician and dispensing technician, Kyle Kirkhouse, followed by a ribbon cutting by one of the store’s long-standing customers, Madaline Roberts, who runs the Milford Haven branch of the Macular Society.

William McNamara, owner of Bluestone National Park Resort and patient of Specsavers Haverfordwest was also in attendance.

To encourage guests to explore the new store and learn fun facts about optometry and audiology, staff organised an interactive treasure hunt.

‘After years of planning and preparation, we are delighted to officially open our brand-new store,’ says Wayne Jones, retail director. ‘We are confident that this investment will bring lasting benefits to the local community for years to come.’

***Bosses Andy Britton and Wayne Jones survey the plans during the construction of the new store***

He adds, ‘A heartfelt thank you to everyone who supported our relaunch event. It was incredible to see so many customers, both familiar faces and new ones, celebrating with us. I also want to extend my deepest gratitude to our incredible team, whose hard work and dedication made this all possible. Without their commitment, none of this would have materialised.’

The new premises at 21 Riverside Quay offers cutting-edge facilities and enhanced services to meet growing community needs with 14 test rooms, including two dedicated audiology suites.

As the largest Specsavers practice in Wales and one of the largest in the UK, the store is equipped with advanced diagnostic technology to deliver exceptional care. These services will also help alleviate pressure on local NHS resources, providing convenience and vital support to residents who previously had to travel significant distances for specialised treatment.

Narbeth local, Sandra Tarrant, previously needed private consultations in Swansea, but she was referred to ophthalmic director, Andy Britton by her consultant earlier this year, who recognised his expertise and the store’s advanced diagnostic equipment.

Mrs Tarrant explains: ‘The staff at Specsavers Haverfordwest are highly trained and genuinely care about your eye health. I no longer face long journeys for tests, and the team’s professionalism gives me complete confidence in their care. You feel like you’re in good hands, with staff who take you seriously and don’t pass you around.’

Partners Andy Britton and Wayne Jones are also passionate about shaping the future of optometry. The new store will provide hands-on training opportunities for optometrists pursuing advanced qualifications such as Glaucoma and Independent Prescribing certificates, ensuring they gain essential clinical experience in a world-class facility.

The new Specsavers Haverfordwest store will be open seven days a week, offering flexible appointment times to cater to the community’s needs. To book an appointment or learn more about the services available, visit www.specsavers.co.uk/stores/haverfordwest.

Business

Ferry traffic surges at Pembroke Dock due to Holyhead closure

Published

5 days ago

December 14, 2024

Tom Sinclair

FERRY traffic at Pembroke Dock Ferry Terminal has surged following the temporary closure of Holyhead Port due to severe damage caused by Storm Darragh. The Port of Milford Haven, which owns and operates the terminal, has implemented measures to manage the increased volume of vehicles and minimise disruption in the area.

Holyhead Port, a key hub for ferry services between Wales and Ireland, has been closed since December 7. Repairs to storm-damaged infrastructure are ongoing, with reopening not expected until at least Thursday, December 19. The closure means more lorries in Pembroke Dock.

Irish Ferries has temporarily replaced the Isle of Innisfree ferry with the larger James Joyce on its Rosslare route..

**The James Joyce has been diverted whilst repairs are carried out at Hollyhead, she will be operating from Pembroke Dock for a few months (Pic: Martin Cavaney)**

***Drivers in their lorries waiting to board ferry at Pembroke Port (Image: Martin Cavaney)***

Traffic management plans in place

Tom Sawyer, Chief Executive at the Port of Milford Haven, said: “We are expecting to see ongoing increased traffic to Pembroke Dock Ferry Terminal. To manage traffic in the area, we have opened up different areas of the Port to reduce the number of vehicles queueing at the Port entrance. We have also been liaising with Pembrokeshire County Council’s Emergency Planning team to identify other areas for longer-term parking, if needed, so that traffic around Pembroke Dock is managed as effectively as possible.”

Sawyer acknowledged the inconvenience to local residents and businesses and expressed gratitude for their understanding: “Our priority is to ensure the safe and effective operation of all traffic on the Milford Haven Waterway. We’d like to thank everyone, particularly those living in and around the Pembroke Dock area, for their understanding and support. We will endeavour to take all actions possible to keep the area as uncongested as possible.”

Concerns over Christmas delays

The closure of Holyhead Port has raised concerns about delayed Christmas deliveries, as the route is a critical link for goods between Ireland and the UK. An Post, the Irish postal service, has reassured customers that alternative routes are being utilised, and the backlog of parcel trucks at Holyhead is decreasing.

A spokesperson for Holyhead Port stated: “Safety is of paramount importance to Holyhead Port, and a thorough investigation into the extent of the damage and repairs required is ongoing. At this point, it is estimated that the berths will reopen for ferry traffic on Thursday, December 19, at the earliest.”

Local impact and advice

Residents near Pembroke Dock have reported increased congestion due to the diversion of ferry traffic. The Port of Milford Haven continues to monitor the situation closely, working with local authorities to alleviate the impact on the community.

Photo Caption: Increased ferry traffic at Pembroke Dock Ferry Terminal due to Holyhead Port closure (Pic: Martin Cavaney/Herald).

Business

Global green hydrogen pioneers choose Milford Haven as new HQ

Published

6 days ago

December 13, 2024

Tom Sinclair

HAUSH LTD, a leading green energy and technology company specialising in green hydrogen, has announced Milford Haven as the location for its new UK headquarters. The move marks a significant step toward making the area a global powerhouse for green hydrogen production and innovation.

Pioneering green hydrogen solutions

Haush Ltd aims to be the first company of its kind to provide green hydrogen solutions for decarbonising land, sea, and air transportation, as well as exporting fuel to Europe. The company’s new headquarters will be established at Fleet Surgeons House, where work is set to begin immediately. The project will create local jobs and includes plans for an education centre to promote skills development in the community.

The Welsh Government is backing Haush through the HYBRID SBRI Hydrogen Port Re-Fuelling Project (HyPR). This initiative focuses on fast-tracking hydrogen production and refuelling services for onshore and offshore fleets, including the design of a permanent hydrogen refuelling solution for the Port of Milford Haven.

High-profile visit to Milford Haven

Economy, Energy, and Planning Cabinet Secretary Rebecca Evans toured the new site on Thursday (Dec 12). She was accompanied by Haush CEO Richard Winterbourne, Chief Technology Officer Joanna Oliver, Chief Operating Officer Adam Hill, and Chief Financial Officer Peter Kristensen.

Rebecca Evans said: “Jobs and green growth are a priority for this Welsh Government, so I am delighted Haush has chosen Milford Haven as the base for its new UK head office.

“The company’s ambitious growth plans align with our aspirations to see Wales become a global leader in renewable energy. This investment will benefit both our climate and economy, generating quality, skilled jobs.

“Haush has committed to training local residents to the highest standards and expanding their educational initiatives to benefit the wider community.”

Driving green innovation

Haush CEO Richard Winterbourne expressed excitement about the project:
“Haush is delighted to make this announcement and move forward with this groundbreaking green hydrogen production project. We look forward to working closely with the Welsh Government to maximise training and educational opportunities for the local community, equipping a future workforce with valuable, transferable skills.”

Chief Technology Officer Joanna Oliver emphasi sed the company’s innovative approach:
“Haush is operating at the forefront of green hydrogen technology and aims to play a significant role in advancing the local green energy transition.”

A brighter, greener future

Haush’s decision to base its UK headquarters in Milford Haven underscores the town’s growing importance as a hub for renewable energy innovation. With strong support from the Welsh Government and a focus on local job creation, the project promises to boost the regional economy and contribute to global efforts to combat climate change.

(Photos by Martin Cavaney/Herald)