Building materials are running short in the UK putting pressure on smaller construction businesses.
Supplies of timber, cement, steel, paints and some plastic products have been particularly affected leading to a prediction that materials prices could rise by as much as 7% this year.
More problematic is the effect the shortages may have on smaller construction companies to keep trading leading to cash flow problems, according to the Construction Leadership Council (CLC).
The Federation of Master Builders has said some building firms may have to delay projects while others could be forced to close.
The shortage is being attributed in part to a surge in DIY and building projects during lockdown as well as a surge in shipping costs.
The CLC has called on large construction companies to work with smaller builders to collaborate on bulk buying which the SMEs are unable to manage alone.
In the meantime we at K2 would urge SME builders to take advantage of our offer to download its free cash management tool to protect themselves against the ebbs and flows of income.