Road sector costs rise by 20% DfT officials told

25/11/2021 | DOMINIC BROWNE

Inflation and supply chain pressures have hit the roads sector with 20% cost increases since last year, senior Department for Transport (DfT) officials have been warned.

Pressures on UK supply chains have reportedly resulted in more imports from overseas adding to the sector's cost, time and carbon footprint.

Feedback from the supply chain also suggests the problems had been made worse by a lack of certainty on medium-term funding, which was described as ' a barrier to unlocking investment in skilled labour during such difficult times'.

Resurfacing being carried out by Eurovia UK, Rickmansworth, Hertfordshire, June 2021

A meeting of the UK Roads Liaison Group (UKRLG), which brings together national and local government from across the UK, was briefed this month on inflationary pressures and supply-chain delays that are affecting the industry.

It was attended by Stephen Fidler, co-director for local transport at the DfT, as well as other senior DfT officials, who sat in on specific sections of the meeting. 

Representing council directors' body ADEPT, Mark Stevens shared evidence from an operations manager, who looks after supply chain and commercial relationships.

The report suggested that 'average material costs increased in excess of 20% compared to [the] same period last year'.

It also noted 'early warning notifications are predicting further cost rises in Q4 and Q1 next year'.

Delays to the actual supply of materials were also a concern in a supply chain 'that has previously worked on [a] just-in time model' resulting in 'substantially increasing non-productive time and subsequently increases prices'.

Standard stock precast concrete products were subject to increased lead-in times beyond four weeks in some cases, and specialist sustainable travel precast concrete product lead-in times were reported as still exceeding 16 weeks.

Timber stocks stabilised but haulage shortages continue to increase lead-in times beyond 8 weeks.

The UKRLG also heard that the availability of surface water plastic products is stable for small quantities but subject to increased lead-in times beyond four weeks for larger orders.

Following the Spending Review in October, Government pledged a three-year funding settlement for local authorities, albeit on a somewhat reduced budget.

The report to the UKRLG identified lack of medium term funding as 'proving a problem for the survival of Tier 2 and Tier 3 contractors'.

It stated: 'Early release of funding will provide the supply chain with the medium-term confidence that they are seeking and enable;

  • early contractor involvement, coordination and communication across all supply chain tiers.
  • encourage investment in apprentices, permanent recruitment and training.
  • firm medium-term commitments will enable coordination with the supply chain and assist in balancing demand to reduce reliance on non-UK goods and services.
  • securing the medium-term future will help to stabilise the supply chain and encourage investment in new sustainable technologies.

Highways InProfile

latest magazine issue
Highways jobs

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

Highways Inspection Officer

£32,962 - £36,791 per annum
We have an exciting opportunity for a Highways Inspection Officer to join us! Windsor, Berkshire
Recruiter: The Royal Borough of Windsor & Maidenhead

Highways Technical Assistant

£29,064 - £31,537
Are you looking for a varied role in a dynamic and innovative team environment that can make a real difference to North Yorkshire’s highways? Leeming Bar, Northallerton
Recruiter: North Yorkshire Council

Street Lighting Electrical Inspector

£34,434 - £38,220 per annum
Do you hold an ONC in electrical engineering or City & Guilds Electrician? Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior bridge Engineer - WMF2212e

£47,181 - £48,226
You will be the key responsible engineer for this area and will also provide technical advice and guidance to our team Cumbria / Various
Recruiter: Westmorland and Furness Council

Civil Enforcement Officer - WMF2221e

£28,598 - £29,540
Are you seeking an active and challenging role, part of a friendly and welcoming team? Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bridge Engineer - WMF2219e

£42,839 - £44,075
We are currently seeking to recruit an experienced and enthusiastic Bridge Engineer Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Senior Public Transport Officer

£42,839 - £46,142
We are looking for an experienced public transport professional to become our Senior Public Transport Officer. Northamptonshire
Recruiter: North Northamptonshire Council

Principal Transport Planner (Strategy) (Fixed-Term)

£48,226-£51,356
We are looking for an experienced professional to join as a Principal Transport Planner (Strategy) Northampton, Northamptonshire
Recruiter: North Northamptonshire Council

Mobile Street Scene Operative

£24,796 to £25,989 per annum
The Waste and Street Scene department requires enthusiastic and committed mobile street cleansing operative. Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior Technician - Highways Design (2 Posts)

Grade 10 £35,422 - 38,730 per annum
An exciting opportunity has arisen within the Professional Services Section Derbyshire
Recruiter: Derbyshire County Council
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