Prices have risen considerably over the last 12 months. Every business in the industry is living through the hike; however, according to a report by the T.T.F., the overall costs in Quarter 1 in 2021 is only 5% higher than the same quarter in 2018. This would suggest that the market conditions from 2018  through 2019 and into 2020 created an artificial low in raw material costs.

Despite the pricing instability, the supply chain and producers have adjusted to the new situation, and so far, it is not affecting demand. So, is it as simple as it looks - does the lack of destinations on the green light list of countries affect the cost of lumber? Data compiled by the Trade Group Construction Leadership Council suggests that it is that simple. Demand for wooden Kitchen and Bathroom products in Europe and the U.S. increased by 40%, while home extensions and repairs have increased by 52%. It seems if we aren’t traveling anywhere, we want where we are to look and feel better.

No company has been unaffected by the increased demand for supplies. But how are these companies delivering despite the increasing demand? There seems to be an enhanced ethos that forecasting and forward planning with key supply partners is now the normal way to ensure production runs as efficiently as possible and demand is met. It seems a logical move with the just-in-time order and delivery out the newly refurbished window. 

Will this enhanced ethos of the partnership last, and for those in the bespoke fitout industry, will it ever seep through to the clients and decision-makers for earlier sign-offs to help the process? Common sense would suggest that if and when the world reopens, money will be spent on travel and experiences as opposed to refurbs but will the pent-up demand and delayed building projects step into that vacuum? With all the external factors involved in that equation, I will leave that to the bluffers …  sorry, I mean the economists to answer. 

One thing is for sure we are in for another uncertain 12 months ahead, but if we can keep this ethos of forward planning and forecast going, companies will be able to rise above the challenge putting them in a better position to meet future demands.