The construction industry in the UK has, in recent years, faced an occasional shortage of insulation materials required to complete construction processes. The shortage can be attributed to various economic factors that have hit both the UK market and the global economy. This article will discuss the various causes of insulation shortage currently experienced in the market today.
Shortage of Lorry Drivers
Insulation boards help reduce carbon emissions and save on the energy used to keep homes heated. This, in turn, aids the UK government in achieving its goal of zero carbon emissions by 2050. The supply chain in the UK is always expected to offer timely deliveries by construction industries that highly depend on the daily deliveries by lorries. The COVID-19 pandemic has, however, posed a great challenge to the construction industry because the number of lorry drivers has greatly reduced, making it hard for the construction materials to be distributed in the market evenly. Manufacturers, therefore, find it hard to provide their clients with the essential equipment fast enough. The supply chain breakdown has especially affected the transport of insulation boards and other essential materials.
However, there are reliable suppliers in the UK with fully stocked insulating and other building materials. You can go to Materials Market for a reliable supply of mineral wool, glass wool and insulation materials.
Methylene Diphenyl Diisocyanate Shortage
Methylene Diphenyl Diisocyanate(MDI) is one of the most important ingredients in the production of the Celotex PIR insulation board. Therefore, if it is experiencing a shortage, then the Celotex PIR insulation boards will not be available in the market. MDI shortage is attributed to the COVID-19 pandemic.
The lockdown measure during the pandemic resulted in manufacturers’ slowed production rates to avoid overproduction because of the situation back then. After the lockdown, construction workers need more insulation boards, but the production cannot be quick enough to meet the demand.
Manufacturers in the UK have clearly stated their aim in ensuring the increased production of Methylene Diphenyl Diisocyanate overtime. A positive trend in its production has also been identified and published since the lift on lockdown measures. The global MDI is predicted to increase to USD 48.25 billion by 2026.
Despite COVID-19 being a contributing factor to a ton of different industrial shortages experienced globally, the pandemic also played a significant role in the shortages in the insulation market today.
During the peak of the global pandemic, many things had to change in various industrial sectors. The number of workers in the production lines had to be reduced while others were getting laid off.
Over the lockdown period, production of insulation materials was greatly reduced, meaning fewer resources were processed and shipped to the market. Shipping took longer than usual, with fewer shipments sent to the market by manufacturers because they produced only that much. The buyer demand for these products also reduced during the pandemic creating an unpredictable trend for the manufacturers.
The end of the lockdown restrictions made many people awake to the reality of being trapped at home in the future as it had happened then. The need for improving their homes came up, and most indulged in home development projects.
Suddenly, development projects created a high demand for building materials with everyone out to make their housing better. There was an increase in orders made for the construction products like insulation products, and many purchases were made. The available materials were quickly cleared from the market, leaving a huge gap for the insulation materials. The production process was quite slow and unable to meet the huge demand in the market.
Competition from Other Sources
The shortages experienced in the insulation market may come from competition from other fields that require similar services to those of insulation markets. The demand for insulation materials in other areas has been witnessed over time, such as in the recreational industry. During the pandemic, demand for better recreational amenities was witnessed, such as boats, pools, and recreational vehicles using insulation materials.
While the insulation used on these recreational products is not the exact one used in home projects, they share some inputs in their production. When recreational insulation products are high in demand, they may affect the production of the insulation markets required in home projects leading to their shortage in the market.
The shortages experienced in the insulation market affect the prices of the materials, causing them to be more expensive than expected. Manufacturers are out to ensure more stable supply chains are maintained in the market to curb the shortages experienced. More people are also expected to join the labor market to ensure that employees are enough to meet the demand in the market for insulation materials.