Procurement for Housing Scotland Q3 2022 Sentiment Report

Prices are up, but there are reasons to be cautiously hopeful.

It has been one of the most turbulent periods the construction supply chain has ever had to navigate. Russia’s invasion of Ukraine upended what had looked like a recovering market, sending energy costs soaring and keeping pressure on prices that were only just beginning to settle after Covid.

But this quarter, a more nuanced picture is starting to form. Shipping costs are falling. Supply shortages are easing. And manufacturers, who tend to feel these shifts first, are beginning to feel less anxious than they were three months ago. For Scottish social landlords trying to plan ahead, this report gives you a clearer read on what’s actually happening and what to do about it.

What you’ll find inside:

• Why the percentage of suppliers predicting cost rises has dropped from 89% to 73% in a single quarter, and what that shift tells us about where the market might be heading by the end of the year.
• How shipping costs are changing fast. The Drewry World Container Index fell 35% compared to August 2021, and that trend has implications for what manufacturers charge further down the chain.
• The real story behind inflation in the supply chain right now. With Brexit and Covid fading as price drivers, energy is the dominant force, and the report helps you work out which supplier price rises are justified and which ones need challenging.
• Why microchip shortages are still causing real problems for boilers and heat pumps, and what that means if you are planning repairs or net zero upgrades.
• How demand is starting to plateau, and why that could actually be good news for social landlords competing with the private sector for contractor capacity.
• A practical checklist on how to handle supplier price rise requests, understand their cost base, and reintroduce competitive tension where it has been lost.

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Download the Q3 2022 report to understand what was driving costs at one of the most volatile points in recent memory, and what the practical advice from that period still means for your procurement approach today.