2022.FORT June Newsletter
13 June 2022
There seem to be signs of some weakening in demand, as inflation and disposable incomes all create pressure. A slow down in global demand is also affecting some items, as you will see in our reports.
FORT Progress Update
Things are starting to ramp up as spring is showing the first signs of summer, and at FORT we continue to try and improve throughout the business. Our showroom is coming on, with the Brick Library and Trex Decking showrooms already making an impression. Alongside the rest of the showroom area, we're working hard on getting an improved section for storing and showing off our Roofing products so keep an eye on that as it develops!
General Availability & Price Update
Availability has continued to improve and FORT has good stock levels. The Ukrainian war and subsequent sanctions will all have some impact, with specific items being badly affected. Again, we have a brief report on Siberian Larch, which as its name suggests is drying up.
So, how’s the market – what’s happening on costs?
The Ukrainian war is continuing to cause long-term issues on prices, Energy costs will stay high and have probably not topped out yet. Concrete is severely affected, because it requires huge amounts of energy to manufacture, as a relatively low cost sector.
Our advice remains the same:
- We strongly urge you to NOT give any firm price commitments beyond a very short timeframe – availability and inflationary pressures are extremely high
- FORT continues to hold excellent stock levels in most areas. Contact our sales team for further advice.
Siberian Larch – Any Alternatives?
Siberian Larch has built a very strong level of demand because it is a reasonably priced material, with decent durability. It also blends in well with other more common European timbers. Its main use is for cladding and surrounding external applications (Brise Soleils for example).
However, the Ukrainian invasion has brought about an almost total ban on the import of Russian timber. As the name suggests, Siberian Larch is Russian; there’s no more coming across and that is unlikely to change. Please be careful about specifying this product.
So, what alternatives are there? In short, there aren’t many. Siberian Larch is going to be very hard to replace. North American Douglas Fir is a possibility, but availability is difficult and it will be far more expensive. It also tends to be sawn ‘scant’, making it difficult to machine to standard sizes.
Another option is Thermowood. This is a heat treatment process, giving increased stability and durability. We think this will become the best option – ask our sales team for information.
Let’s look at the key indicators:
Containers:
we’ve seen another fall in overall rates, but they are still at historically high levels. These rates have been around for some time, so they’ve become ‘normal’; hopefully we might continue to see further falls to compensate for other cost increases.
Steel:
Having jumped in price after the initial invasion, prices have settled down, but still remain at high historic levels.
Timber:
As usual, this chart only plots US rates, but gives the general picture. Economic uncertainty is really showing on US lumber rates.The lack of Russian/Belarusian timber into the market has not developed into increased prices, as European demand is also slowing. Russian timber is going to China, easing up demand elsewhere.
Certain items (Siberian Larch and Birch plywood) are going to be severely affected. Please contact the sales office for advice on substitutions and alternative options.
PIR Insulation:
Prices have rocketed again, with general increases in June of around 12.5% and another slated for July at around 10% - this will have a severe impact on contracts where Customers are locked in. Fort recommend that you consider alternatives, such as Actis – see these links: How to insulation a timber frame wall and How to insulate a pitched roof
Plastic Gutter/Drainage:
Increases in costs of plastic gutter, underground and soil components will impact on landscaping and general building works. FORT has done what it can to minimise the impact, and for guttering we’re able to offer aluminium and cast iron alternatives if required.
Inflation:
We remain at scary levels of inflation. RPI running at around 11%. Even more concerning is that this is not going to be a short- term issue. The impact is bound to affect affordability and thereby demand.
Loft insulation – we’ve just been notified of a 32% price increase, with more to follow in July. This level of increase is not unique.
June Offers
Get great savings this month that will give you a real SPRING in your step.
• Treated Blue Batten25x38mm£0.68/m+VAT
• Treated Blue Batten25x50mm£0.88/m+VAT
• Primed MDF18x94mm, Square Edge - 4.4m£9.99+VAT
Get in touch with our awesome sales team on 01488 505800, or pop in to see us on Ramsbury Road, Membury. Take advantage of these offers until 30th June.
Staff Profile of the Month
Each month we’ll introduce you to members of our fantastic team, from those at the sales counter through to those who you may not usually come into contact with.
Name: James Pye
Job Role: General Manager
Hobbies & Interests: Football, BBQ, Pubs and Diggers
Previous Work: Marlborough Building Supplies; ongoing handyman work as Jimmy Pye DIY
Joined FORT In: January 2020
Most people will know my work already as I cover most aspects of FORT; answering phones, driving delivery vans, loading customers and keeping the yard in tip-top condition. I love engaging with the customers and helping them to get the best service possible at all times. My role here is varied, but that’s the way I like it as no two days are the same.
Outside of work, I am well known for my DIY and carpentry skills (decking a speciality) and am always ready to help others with their projects. I recently became a father and although it’s tough dealing with a slobbering lad who only seems to eat, cry and sleep and is incapable of doing anything for himself, my wife and little lad seem to manage!
The best thing about working at FORT is the excitement of being the midst of a fast-paced business that’s growing and putting smiles on faces. If any customers need a pick-me-up when they come to site, ask me to tell you a joke and you won’t be disappointed!
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As always, please do not assume stock availability - check with the sales office!
Our reputation relies on word of mouth and testimonials from our valued customers, and as such we'd love for you to share reviews of your experiences with us on either Google, Facebook or TrustPilot if you have the time.
Thank you very much for your understanding and support at this time.
Best regards,
Matt, Tim & Keith
The Directors