Sedgwick’s newest report on building repair costs in the UK reveals how the COVID-19 pandemic exacerbated issues the sector was already experiencing even before the coronavirus hit.
According to the firm’s Q1 UK building repair cost review, there was a 5% increase in repair costs during the period. Sedgwick noted that during the quarter, many manufacturers operated at reduced output as a result of the pandemic. The report also suggests that cost increases could continue to rise to 7% by the end of 2021.
Sedgwick noted that factors such as shipping difficulties; a shortage of HGV drivers, which was compounded by Brexit; and an increased demand for construction projects caused significant problems for building repair contractors during the first quarter of 2021.
Current material and labour supply difficulties will continue for at least 12 more months while manufacturers recover capacity and resolve their distribution problems, Sedgwick technical director Peter Wassell suggested. Until then, Wassell commented, supply and demand will cause prices to rise.
“While prices are the utmost concern, the availability of materials is also worrying. It’s possible that as shortages continue, circumstances may arise where it’s not possible to complete a repair without changing the existing finishes or specifications,” said Wassell.
Supply issues are not just affecting the housing construction space but have also made claims and underwriting more challenging in the agriculture industry, Sedgwick’s report said - contractors who previously would have held quotes for 30 to 60 days are now providing quotes for just seven days. And farm building suppliers at a recent trade show advised that the cost to reinstate agricultural buildings is now at an average of £27,000 compared to £18,500 a year ago.
