The Covid-19 pandemic has affected both the labour and material markets due to social distancing, new safety measures and national lockdowns, with the UK having entered its second on the 5^th November.

Remember Brexit that is the other supply chain disruption that hasn’t gone away yet. In previous CHIC CHAT’s, we noted that stockpiling for Brexit assisted the sector with the first national lockdown; as suppliers had been preparing and adapting supply chains to the new commercial & trading realities of Brexit.

As we entered England’s second lockdown, CHIC has asked its active supply chain and stakeholders about:

• The impact of the pandemic on their business?
• The impact of the second lockdown on their capacity to provide their services/goods?
• Expectations of and final preparations for Brexit.

We approached 61 CHIC suppliers. These were grouped into contractors, distributors and manufacturers.

Key findings across these groups are:

Contractors:

• Are operating effectively now, with social distancing & safety measures implemented
• Most contractors do not believe the pandemic, lockdown or Brexit will affect their capacity to provide their services, having now implemented the current safety measures.
• Are expecting to see price increases following Brexit on their material purchases
• Are beginning to notice delays on materials to other supply and fix clients (for CHIC members, most materials are supplied direct)
• Are suggesting potential redundancies in the paint industry, but this appears to be aimed at support staff rather than manufacturing and delivery facilities.
• Are experiencing an increase on lead in times for certain products (e.g. roof tiles and kitchens) following the first lockdown.

Distributors:

• Are operating with social distancing & safety measures implemented
• Are continuously analysing market trends and adapting their supply chains
• Are experiencing increased lead times for a number of materials
• Have been preparing for Brexit for a number of years – with stocks and supply chain arrangements being adjusted and shifted accordingly.

Manufacturers:

• All suppliers are operating with social distancing & safety measures implemented
• However, the new social distancing & safety rules have led to lower production capacity and to increased lead times
• Have prepared for Brexit by stockpiling accordingly, as well diverting and adapting their own supply chain to better position themselves for 2021 trading
• The drop in demand experienced following the first lockdown has affected demand for some manufacturers, which in turn had an affect on their production and subsequent operations

Material Supply:

• There is currently a national shortage of PVC resin, which is used to extrude the profiles used to manufacture windows and doors. This shortage is not company specific and has affected the entire PVC industry and all their manufacturers.
• There continue to be shortages on timber & PPE. However, plaster has been taken off allocation with a return to normal ordering but still under close scrutiny.
• Lead times have increased on Concrete, Porcelain, Natural stone, Building chemicals, Kitchen appliances, Timber (across a large range of different timbers), Janitorial supplies, Felts, Roofing Tiles and Timber Doors.

This feedback from across CHIC’s partner organisations provides an idea of they key forces and issues currently at play which might affect CHIC members.

We need to stay flexible but recognise that the disruption being caused by COVID-19 and Brexit will continue for some while. Together, we need to give all stakeholders as much notice on future programmes of work to minimise disruption.