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20 Jun 2022 by Fairview
Recent global events have had a considerable impact on all businesses, but Australia’s construction and manufacturing industry appears particularly hard hit and is struggling to manage the volatility. Companies have collapsed, prices continue to rise, and skilled labour and materials are in short supply.
The price increases manufacturers face is cascading through the supply chain and have truly begun to impact the end consumer.
“The Construction industry has always been fast-paced, but the supply chain crisis and price volatility has made it even more difficult to manage, has increased stress and pressure on project teams and is really testing each business’ resilience,” said John Wallace, Fairview’s State Sales Manager – Victoria.
Transport & Supply Chain Challenges –
It has been an exceedingly difficult period in supply chain and logistics, with terminal and port congestions causing excessive delays which are not expected to ease in the near future.
In terms of local freight and logistics, increased fuel and AdBlue prices along with driver shortages is putting on additional pressure on stock access.
What trends are we noticing?
Joe Bousquin, Senior Reporter of the Construction Dive reports,
“Supply shortages, worsened by surging demand, have led to the largest annual spike of input prices to construction since 1987, when data collection began”.
Drivers of Product Price Volatility
Many product suppliers within the construction industry are contending with aggressive cost pressures associated with the price of aluminium. This has been driven by several factors:
Aluminium pricing has increased considerably since 1 Jan 2022 and unfortunately there appears to be little to prevent ongoing price volatility caused by these drivers.
In light of price pressures, some contractors are opting for on-site painted fibre cement. Whilst it helps to achieve a cost saving, this is an enormous compromise on the aesthetic and performance of the façade and there are many cost-effective alternatives available.
With Vitracore G2, there is no compromise on design. Vitracore G2 uses the tried and tested specialist technology PPG coating system so it is available in the same extensive colour range as Fairview’s leading solid aluminium panel, Vitradual.
Vitracore G2 also contains 50% less aluminium than solid aluminium products, and it thus not as heavily impacted by the price fluctuations. Vitracore G2 is the most stringently tested product of its kind, is 100% safe and compliant, deemed non-combustible and the perfect product for both new builds and to replace combustible cladding.
The limitless range of finish options, including solid, metallic, and multi-layer finishes such as spectra, chromatic, woodgrain, brushed, and natural look, is unmatched and provides you with a solution for any design intent.
In addition, Fairview supply a range of non-aluminium products including:
CeramaPANEL – through-coloured fibre cement panel (QLD and VIC)
Vitraloc – roll-formed steel
Argeton – terracotta ventilated façade system
Equitone – through-coloured fibre cement (NSW and ACT)
20 tonnes of Vitracore G2 is being delivered from Lithgow NSW to Melbourne VIC
We are committed to helping you make confident cladding choices.
To learn more about Fairview’s range of solutions, order a sample or discuss what the industry’s supply and price challenges mean for you and your project, please contact our friendly team.