Procurement for Housing Scotland Q1 2023 Sentiment Report

Green shoots, but the ground is still shaky.

The predicted recession hasn’t quite arrived. Inflation is starting to ease. Shipping costs are back to where they were before the pandemic. And supplier confidence, which took a knock last quarter, has bounced back to 9.05%. On the surface, things are looking up.

But scratch beneath that and there’s still plenty to keep a close eye on. Contractors are nervous about capacity, labour costs are climbing and the supply chain knows all too well how quickly things can turn. This quarter’s report captures that delicate mood honestly, and gives PfH Scotland members the information they need to stay ahead of it.

What you’ll find inside:

• Why overall supply chain confidence has risen to 9.05%, and why contractor mood in particular has made a sharp recovery from the low point of last quarter.
• How materials pricing has begun to peak and stabilise after a sustained climb from 116 to 162 points on the Construction Materials Price Index between January 2020 and July 2022.
• What container and shipping costs returning to pre-pandemic levels means for what manufacturers will be charging in the months ahead, and how that filters through to merchants and contractors.
• Why contractors are the outlier in this quarter’s picture, with over a third already reporting that demand is outstripping their capacity and more expecting the same within six months.
• The skills picture as contractors see it, with labour shortages and rising wages creating real pressure on delivery at a time when investment in training is hard to justify financially.
• A practical checklist for members covering how to stay agile in uncertain conditions, scenario plan for different market outcomes and use the current climate as leverage in supplier negotiations.

Get your copy

Download the Q1 2023 report and get a clear picture of where the supply chain stood at the start of a year that promised much but kept everyone guessing.