Nantwich-based building products form boss Simon Midwood has predicted a 2022 of “improved stability and growth”.
The managing director of TIMCO, which supplies essential construction products to building and industrial sectors, said he hopes prices will stabilise this year.
“After a very difficult two years, when the industry has been hit by product shortages, rising prices and transport delays, I think we’ll see raw material prices stabilise and transport delays becoming less severe.
“It’s great to see Capital Economics reporting that the construction sector grew by 3.5% from October to November last year, and businesses serving the construction sector should look to capitalise on the government building and huge amount of private sector house building taking place.
“The industry should cope better with any supply chain issues, as lots of manufacturers are now rehearsed in the issues and know how to manage them in a pandemic.”
But he warned: “Having just been informed by our shipping companies that they are imposing another 15% on their already outrageous prices, this is an incredible burden for the industry.
“They made astronomical profits last year and now they are asking for more, yet their service is worse than ever, so something must change.”
He said his firm TIMCO has taken measures to protect against product shortages.
It typically keeps around five to seven months’ worth of stock, which acts as a buffer against the worst product shortages and delays.
“Certain sectors have been worse affected, such as timber, cement, brick and block, which fortunately doesn’t affect us.
“We currently have £34 million worth of orders with the Far East and while our stock holdings helped, we had to source some alternative products to maintain supplies of the everyday products our customers rely on.
“I think companies need to be agile and open to finding new suppliers if they need to.
“There needs to be predictability in the supply chain.”
TIMCO experienced an increase in turnover of 14% – to £49.7m for 2020, and is expecting a £60 million turnover for 2021 when figures are audited.
The company invested in warehouse capacity and in staff with seven new Regional Business Consultants were introduced, bringing the total 20.
