British Gypsum Comment: Q2 2021

Stacey Temprell, Marketing Director British Gypsum is BMBI’s Expert for Drylining Systems.

Our main focus throughout the second quarter was tackling the ongoing materials shortage that is currently consuming the construction industry. Raw materials have been growingly scarce and it’s likely these challenges will continue over the coming months. This has had a profound impact on construction product availability and costs, causing order backlogs and driving cost increases.

With high levels of activity across the construction industry and suppliers struggling to meet demand, manufacturers and construction partners are finding it difficult to maintain their usual services to building clients.

British Gypsum has been no exception, and we have felt this strain across a number of our product ranges. For example, paper liner used in our Gyproc Plasterboard range has been in limited supply, and PIR insulation producers for one of our Gyproc Thermal Laminates are experiencing increasingly high prices for the raw materials required. The shortage of steel has also led to the depletion of buffer stock we typically keep in our supply chain, and steel supplies are likely to be difficult for some time.

To help, we have introduced an allocation system to ensure fair distribution of materials among our valued partner construction customers and manage the volume of product requirements. We continue to work hard on our mitigation strategy to increase supply levels, which includes securing material surety from some of our suppliers.

We hope that in quarter three these shortages will begin to stabilise, and materials will become more readily available across the industry. Until then, we will work closely with customers and supplier partners to obtain regular, accurate and transparent information throughout the supply chain to aid communication.

Despite current project delays, we’re confident that the construction industry will continue to thrive and recover once stock begins to increase again. Throughout quarter three, we look forward to seeing growth in the construction sector despite the substantial challenges of the past year, and look forward to the positive legacy we will create by building great spaces to work, rest and play.

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