At a glance
Here’s what you need to know about how the current situation could affect your work.
- No widespread material shortages at the moment, but costs are more volatile
- The main risk is rising energy, fuel and transport costs, not materials disappearing
- Price volatility makes quoting harder, especially on longer‑term work
- Clear, early communication with clients can help manage expectations and reduce disputes
With the conflict in the Middle East in the news, you may be concerned that a material shortage is on the horizon. While other recent conflicts have caused disruption, the short answer is that there is currently no expectation of widespread shortages, and materials remain generally available.
The bigger issue to be aware of is cost volatility, rather than products suddenly disappearing.
That still matters on site and with customers. Higher energy, fuel and transport costs can feed through into supplier prices, shorten quote validity periods and make it harder to price work confidently - especially on longer‑term projects. At the same time, clients may be confused or frustrated by rising costs, particularly if they don’t understand what’s driving them.
At the Federation of Master Builders (FMB), we work closely with builders, merchants, suppliers and manufacturers to keep track of developments affecting costs and availability. This article sets out what’s happening, where the real risks are, and offers practical steps - including a simple explanation you can share with clients - to help you manage conversations and reduce the risk of disputes during a period of uncertainty.
What’s driving cost pressures?
Energy
Higher global energy prices increase the cost of manufacturing many building materials, including bricks, cement, glass and steel - even when those products are made in the UK or Europe.
Fuel
Rising fuel prices affect the cost of moving materials at every stage, from factories to merchants and from merchants to site. This can lead to more frequent price changes from suppliers.
Transport and shipping
Disruption to international shipping routes is increasing transport costs for some imported products and, in some cases, lengthening delivery times. UK and European alternatives are available, but they can be more expensive.
What’s the takeaway for builders?
Materials are generally available, but price volatility is the main issue. That makes quoting harder, especially on longer‑term work, and makes early, clear communication with clients more important than ever.
How you can manage your risk
Here are some practical steps you can take to reduce risk:
- Flag potential price volatility early when discussing building projects
- Be clear about how long quotes are valid for
- Keep records of supplier price changes and updated quotes
- Build in some flexibility where possible on longer‑term work
- Stay in close contact with merchants and subcontractors
These steps will not remove cost pressures, but they can help protect margins and working relationships.
A simple explanation you can share with clients
Explaining rising costs can be difficult, particularly where clients are unaware of what is happening beyond their own project.
At the FMB, we regularly hear from builders that having a clear, independent explanation can make these conversations easier and help manage expectations early on.
You can copy, paste or adapt the wording below when speaking to clients. It is designed to explain what’s driving cost increases in plain English, without placing blame or escalating concerns.
Why are some building costs going up?
Global events are affecting energy prices, fuel costs and international transport routes. These are all things the construction industry relies on every day — not just on site, but in factories and supply chains that produce and deliver building materials.
Even when materials are made in the UK or Europe, higher energy prices increase the cost of manufacturing products like bricks, cement, glass and steel. Higher fuel costs also increase the cost of transporting materials from factories to merchants and on to site.
This means builders are facing higher and more unpredictable costs that are outside their direct control. Many are doing their best to absorb some of these increases, but it is not always possible to avoid passing all of them on.
These pressures are being felt across the construction industry, not just by individual firms. The Federation of Master Builders - the UK’s largest trade association for small building companies - is monitoring the situation alongside suppliers, manufacturers and other industry bodies, and will continue to keep builders informed as things develop.
Our aim, as your builder, is to be open and transparent about costs, so there are no surprises later in the project.
What we’re doing to support you
We know that periods of cost volatility create uncertainty for builders - particularly when you’re trying to price work fairly and keep customers informed.
That’s why we stay in close contact with builders, merchants, suppliers and manufacturers, so we have a clear picture of what’s happening on the ground and how it’s affecting small firms. This helps us spot emerging issues early and share practical guidance that reflects the realities you’re dealing with day to day.
We’ll continue to keep members updated where it’s helpful to do so, and to speak up where rapid cost changes risk putting unfair pressure on small building businesses. Our focus is on helping you navigate uncertainty with clarity and confidence, so you’re not left carrying risks that are outside your control.
