How is the scaffolding market doing?
Due to the halt in construction services caused by multiple national lockdowns; 2021 has and continues to be a busy year in the scaffolding market. Although, the construction industry has and is still facing disruptive challenges. These include: financial pressures, labour shortages, and supply chain problems.
According to ibisworld.com, Scaffolding Services in the UK is a £2.8bn industry. Since 2016 the market has grown by 0.9%.
However, the biggest obstacle that scaffolding contractors have had to overcome this year is the rise of the cost of materials. This being due to the construction industry having been highly dependent on China for most of the materials/equipment. Clearly, the aftermath from Brexit and Covid-19 remain. According to https://www.homebuilding.co.uk/ the construction material shortage has caused the price of materials to rise 14% this year.
Additionally, problems have been intensified due to thousands of tradespeople and lorry drivers having to self-isolate. This has significantly added further pressure on businesses. “Steel is in high demand globally, and shortages could persist until the end of the year” says Jack Woodfield, editor of homebuilding.co.uk. The British Electrotechnical and Allied Manufacturers Association said in May this year that a dramatic reduction in steel production in early 2020 has caused a worldwide shortage. While British Steel recently stopped taking orders on structural steel sections due to “extreme demand”.
Professor Noble Francis of the Construction Products Association says, “supply issues are likely to remain a problem for the next six to nine months at least”. Additionally, Brian Berry, chief executive of the Federation of Master Builders (FMB), tells: “While there is no certainty as to when this crisis will ease, with circumstances differing from material to material, most forecast significant material shortages for at least the duration of 2021.”
Scaffold Finance is here to help in these strange times!
Fortunately, this is where we can help here at Scaffold Finance. With the price of scaffolding tubes continuously on the rise since early 2020, it doesn’t make much sense to be paying for your scaffolding tubes outright. So, now more than ever is a great time to consider financing your scaffolding supplies if you haven’t already. We provide scaffolding finance with interest rates from 3.6%. Head over to our website’s leasing hub to use our free leasing calculator!
More and more scaffolding companies are preferencing financing over hiring their materials now. Not only because of the rising prices of equipment, but also as you have the option to buy it at the end of the term. Thus, once you have paid your monthly payments in full and terminated your agreement, there is only a nominal fee to pay. Then once your payment has been received, ownership of the materials is then transferred to your company! See it as an investment as opposed to just another expenditure of the month!
For more information or just a chat, please don’t hesitate to give us a call on: 01494 506 383. Alternatively, email us on email@example.com.