Construction supply issues, creating price hikes for building materials, could see kbb budgets pared back says owner of Kitchens by Nick McNally.
Speaking to Kitchens & Bathrooms News, as part of its video interview series #KBNOne2One, Nick McNally said: “It is clear to see that there is certainly a short-term issue within the construction industry.
“Shortages of materials, shortages of labour, price increases in labour, price increases of materials and much of it is supply and demand.”
He said clients who may have saved a pot of money for bigger projects or extensions, which include building work, may now be faced with higher costs of 30-40% for completion.
Edinburgh-based kitchen retailer McNally commented: “The knock-on effect to the kitchens, bedrooms, bathrooms industry is savings.”
“It’s difficult to make savings on roof trusses, building blocks, and core materials to build the structure.
“That’s when consumers pare back in interiors, with worktop choices and appliance specification. I think maybe budget-wise that’s going to be pushed.”
He added: “As everyone knows in this industry, the prices have gone up. It’s a double whammy.
“So, I think that’s a real challenge that will probably continue to stay for the next six to eight months.”
In a recent LinkedIn poll, Kitchens & Bathrooms found supply and subsequent price hikes were considered among the biggest challenges to kbb retailers’ businesses.
However, McNally said business has been great despite the constricted trading period, which has seen the company cram 12 months of sales into six or seven.
And he believes the kbb market will continue to benefit from the growth of interest in home improvements, with perhaps a lull in trade when international travel resumes to near normal.
McNally was also optimistic about 2022, commenting: “Next year, I would like to hope things are back to as much normality as possible. I would hope that business continues to grow.”
“We have set our stall out in the hope that next year is going to be a great year; a great year for us and a great year for the industry.”