Inflation is stabilising but energy prices 'extremely volatile', CLC says

28/07/2022 | DOMINIC BROWNE

Inflation has stabilised in the construction sector but is likely to 'persist at a lower level' for the rest of the year, according to a top industry body.

The Construction Leadership Council put out a statement this week giving a moderately positive outlook on the current economic situation, however, it also noted 'extreme volatility' in energy prices.

While many UK manufacturers purchase energy on forward contracts to help manage risk, some firms are experiencing electricity costs fluctuating 'by up to 300% on a day-to-day basis, which may affect the financial viability of some energy-intensive manufacturing during the winter months'.

The CLC said: 'With one or two exceptions, general product availability continues to improve across all categories and all regions, with the exception of Northern Ireland where separate issues are affecting the transport of goods.

'Very high levels of inflation exacerbated by the Ukraine conflict have stabilised. Softening demand, particularly at the retail end of the market, has led price inflation to moderate for some products, although this is unlikely to result in lower project costs in the short term. The general view is that inflation will persist at a lower level across most product categories for the rest of the year.'

The statement came from co-chairs of the Construction Leadership Council’s Product Availability working group John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association.

They also note that transport issues continue to affect imported products with some major merchants suggesting that only 25% of goods from the far east arrive on time.

'Container costs also remain at high levels, and reduced capacity on many shipping routes is likely to have the effect of sustaining high prices,' it states.

Highways InProfile

latest magazine issue
Highways jobs

Highways Maintenance Manager

£51,356 - £55,539 per annum
We are looking for an experienced Engineer to join the team as a Highways Maintenance Manager Selby, North Yorkshire
Recruiter: North Yorkshire Council

Highways Maintenance Manager

£51,356- £55,539 per annum
We are looking for an experienced Engineer to join the team as a Highways Maintenance Manager Brompton on Swale, Richmond
Recruiter: North Yorkshire Council

Permit Officer - Internal works promoter - WMF2244e

£34,434 - £35,412
The streetworks Permit Officer role within the highways service Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Highways Development Management Engineer

£41,816 - £45,175
You will be based in the Highways Development Team and work closely with colleagues across the wider transport service. Northamptonshire
Recruiter: West Northamptonshire Council

Transport Project Officer

£34,203 - £37,067
We are seeking an enthusiastic and motivated project officer to work in our Highways and Transport Service. Northamptonshire
Recruiter: West Northamptonshire Council

Engineer - Structures

£40,777 - £44,075
Join the successful Structures team, and become a vital team member Broad Lane Office, Yate
Recruiter: South Gloucestershire Council

Assistant Traffic Management Technician - WMF2251e

£26,403 - £26,824
Westmorland and Furness Council is seeking an organised and enthusiastic individual Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Senior Traffic Management Technician WMF2256e

£34,434 to £35,412 (pay award pending)
Westmorland and Furness Council is looking for three experienced and motivated individuals Cumbria / Various
Recruiter: Westmorland and Furness Council

Senior Bridge Technician - WMF2257e

£34,434 - £35,412
We are currently seeking to recruit a Senior Bridge Technician to join our Bridges and Structures team. Penrith, Cumbria
Recruiter: Westmorland and Furness Council

Highways Network Officer WMF2263e

£38,220 - £39,152
In this role, you will assist in leading the South Lakes Area Highways team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Traffic Management Technician - WMF2240e

£28,598 - £29,540
Westmorland and Furness Council is seeking a committed and technically capable individual to join our Traffic Management Team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Senior Technician-Road Closures

£35,422 - £38,730
The Network Planning division is seeking to appoint someone who is enthusiastic and a team player Derbyshire
Recruiter: Derbyshire County Council

Technician - Road Closures (2 Posts)

£29,719 - £31,691
The Network Planning division is seeking to appoint someone who is enthusiastic, an excellent team player Derbyshire
Recruiter: Derbyshire County Council

Structures Inspector

£Competitive
We are excited to offer a fantastic opportunity for two Permanent Structure Inspectors to join our dynamic SBIM team Bristol
Recruiter: Amey

Highways Maintenance Operative

£Competitive
We have fantastic opportunities for a permanent Highways Maintenance Operatives Kettering, Northamptonshire
Recruiter: Amey

Site Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Site Manager Bristol
Recruiter: Amey

Principal Commercial Manager

£Competitive
The SBIM contract involves delivering inspection and maintenance programmes for National Highways Bristol
Recruiter: Amey

Senior Commercial Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Senior Commercial Manager Nottingham, Nottinghamshire
Recruiter: Amey

Highways Maintenance Operative

£Competitive
We have fantastic opportunities for a permanent Highways Maintenance Operatives. Northampton, Northamptonshire
Recruiter: Amey

Managing QS

£Competitive
In this role, you will support the Senior Commercial team in the end to end commercial process for the Area 12 contract. Yorkshire and the Humber
Recruiter: Amey
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW