Skip and diesel price hikes bad news for builders

Nearly two-thirds of builders have had to pass on price increases for skips to their clients, while 20% have had to pass on diesel price rises, and that’s making improvement projects more expensive for home owners, according to new research by the Federation of Master Builders (FMB).

Sylvan Drive. Copyright David Martin

The key results from the FMB’s research into skip prices say that:

  • Three quarters of builders report the price of skips has risen over the past 12 months;
  • The average cost of an eight-yard skip has gone up by £24 over the past year, adding an extra cost of £360 to the average extension;
  • Three quarters of builders said that skip price rises have squeezed their margins.

The widely-reported hike in diesel prices is also starting to bite and is having the following impact on small and medium-sized (SME) construction firms:

  • Nearly half of construction SMEs have made lower margins on projects
  • Nearly a fifth (17%) have been forced to raise the prices they charge clients
  • More than one in ten have had to turn down jobs they would have normally accepted as they are too far away
  • 10% have taken steps to reduce vehicle use

Commenting on the research, Brian Berry, Chief Executive of the FMB, said the impact of the rising price of skips could also have an added  impact, through a rise in fly-tipping.  “In 2016 and 2017, more than one million incidences of fly-tipping were dealt with by councils in England and the last thing anyone wants is for this number to increase.”