2022---Challenges in the Building Industry

2021 was pretty average in the building industry but 2022 looms as even more challenging. Constant material shortages, availability and extremely high demand will continue to hinder any job fluency you may hope for. On top of that the constant and daily price rises will continue to leave a hole in the builder’s hip pocket.

I’ve been in this industry for over 30 years on the Sales side and have never experienced anything remotely like this, nor anything remotely like it. There doesn’t appear to be a lot of light pushing through the tunnel at the moment so you have to protect yourself as best you can.

I ‘m not sure how you can put clauses on rise (there will be no fall) in your contract when banks only want fixed price contracts, however I would suggest you do your best. Shortage on materials, high demand on what is available, ballooning freight costs whether it be petrol or containers ( which have gone up ten fold) aren’t going away so do your best to protect yourself.

You guys create peoples dreams in building their new houses. Ensure you get to look after your own.      

Rodney Tattam 18th  March 2022