October 2021
Nixon Hire price changes effective from 1st January 2022
Over the last two years, our business, like yours, has had to adapt to change and rise to new challenges. Nixon Hire have endeavoured to reduce costs throughout the business in order to minimise the impact of price increases that we have incurred through a period of continued economic unpredictability. However, over the past 6 months there have been unprecedented increases in the costs of our supply chain. Steel, shipping and other raw materials have all significantly increased our costs of both new equipment and parts/materials used to maintain and repair our fleet. On average to date, we have seen most of our manufacturers increase their prices in excess of 10% and over the coming months we are expecting to see this rise again.
As a result, in order to continue to serve our loyal customers and provide new innovative products to you, we must introduce a price increase of 7%, which will take effect from 1st January 2022. This price increase will apply to existing and new hires.
Nixon Hire is extremely grateful for your custom and whilst the decision to increase prices has been a difficult but unavoidable one, we are confident that our hire rate remains reasonable and competitive in the marketplace. We hope you will continue to be pleased with our superior product and service offering and look forward to continued business together.
Next Steps
All live contracts will be automatically increased on 1st January 2022. To minimise invoice queries, we would like to request that your internal purchase orders are amended to reflect the new hire rate.
OCTOBER PRICE INCREASES
Dear customer,
Given the current market conditions we know how important it is that you are provided with advanced notice of any significant supplier price increases. We are therefore advising you of some price increases on products that you have purchased previously. As always, we are working hard behind the scenes to minimise these price increases but we wanted to let you know the current projected increases to allow you to plan accordingly. These increases will come into effect on October 1st 2021.
Product Category/Price Increase
Blocks - up to 10.25%
Fencing - 51%
Plaster - 4%
PIR - 10%
Wool Insulation - 9.75-11.5%
Plasterboard and Accessories - 3.9-7.5%
Power Tools 5-8%
MDF Mouldings - 40%
Foil Insulation - 3-6%
Please note, the above increases do not apply to all products within the categories and only highlight the most relevant price increases.
Why we’re increasing our prices.
The sharp increase in fencing is unfortunately the result of the volatile prices for timber we have been experiencing recently.
The supplier has quoted that over the last 12 months, the cost of round wood, that is used in the production of fencing, has increased on average 125%. This is worsened by the increasing costs for other elements used in the production of fencing such as staples and nails that have increased by 60% or packaging material that has increased by over 50%.
The increase in price for many raw materials including Steel, Copper, Aluminium, Lithium, Nickel and Resin have resulted in price increases from some of our powertool suppliers. The more recent increases in price for cement products, including blocks, comes from the costs imposed on businesses that have to purchase carbon allowances by the UK Government. This has resulted in a number of companies implementing an environmental surcharge.
Similar to previous months, supplier operating costs are still rising. These costs include but are not limited to; importing finished goods, availability of haulage, packing materials, implementing new safety measures and operating costs.
Keeping up to date.
To keep up to date with any other price increases and product availability, please visit our dedicated supplier updates page here:
www.jewson.co.uk/supplier-updates
If you’d like to talk to us about anything we’ve included within this letter, please get in touch with your local branch. We look forward to continuing to work with you.
Yours Sincerely,
Jewson
Building Materials • Timber & Panel Products • Doors & Windows • Kitchens & Bathrooms • Tool Hire
Saint-Gobain Building Distribution Limited trading as Jewson. Registered Office: Saint-Gobain House, East Leake, Loughborough, Leicestershire. LE12 6JU. Printed on 100% recycled paper from post consumer waste using a totally chlorine-free process.
Building prices go through the roof: Shortages and surge in Covid lockdown projects send costs soaring at fastest rate since the last century, new data shows:
- Unprecedented demand for extensions, loft conversions, landscape gardening
- Builders say they have to go back to customers ‘daily’ with increased quotes
- The price rises over the summer were the highest since records began in 1997
- By TOM WITHEROW BUSINESS CORRESPONDENT FOR THE DAILY MAIL - PUBLISHED: 00:00, 7 September 2021
The cost of building materials for home improvements is rising at the fastest rate since the 1990s, data suggests.
‘Unprecedented’ demand for extensions, loft conversions and landscape gardening, amid a supply shortage, has led to prices ‘going through the roof’. Builders say they are having to go back to customers ‘almost daily’ with increased quotes as merchants raise their fees. One said he had been forced to increase the predicted cost of an extension from £20,000 to £27,000 – up 35 per cent. The price rises over the summer were the highest since records began in 1997, according to research group IHS Markit and the Chartered Institute of Procurement and Supply.
And the high demand has come against ‘sustained and severe’ disruption to supply chains caused by global shipping chaos and the shortage of lorry drivers, forcing customers to wait up to eight months for deliveries of items such as bricks. The price of some wood products has almost doubled year on year, data from the Office for National Statistics shows. The cost of a typical 4.8metre (15ft 9in) length of sawn treated timber has risen from £17 to £29, while the cost of a 2.4metre (7ft 10in) length of plywood has increased from £34 to £62. The price of tiles has gone up by close to a third, from £1.20 to £1.58, with builders facing six-month waits for deliveries. Cement has risen in price by a fifth year on year, meaning a 25kg (3st 13lb) bag now costs more than £5, up from £4.20. Duncan Brock, group director at the Chartered Institute of Procurement and Supply, said the pressures on supply were ‘formidable’, adding: ‘Material and staff costs went through the roof [in August].’
John Newcomb, chief executive of the Builders Merchants Federation, said: ‘If Mrs Miggins is having a loft extension done she is going to pay more for materials. Merchants cannot absorb those increases, they have had to pass them on. ‘Anybody who is doing any work will be paying a lot more for that work now than they would have a year ago.’
The chaos in global shipping has also contributed, with the cost of a container from China reportedly increasing from £1,800 a year ago to £8,640 today.
Boris Johnson has looked to infrastructure projects as a way of kick-starting the economy, meaning homeowners are competing with national construction projects for materials. PM promised infrastructure spending to boost UK economy in June 2020.
Rico Wojtulewicz, of the National Federation of Builders, said: ‘It’s completely and utterly unprecedented. We’re hearing evidence that the largest housebuilders are going direct to manufacturers, which means there’s less stock for home repairs work.’
Demand for improvements rocketed as families stuck at home used lockdown savings to build home offices and improve gardens.
At the same time Boris Johnson has looked to infrastructure projects as a way of kick-starting the economy, meaning homeowners are competing with national construction projects for materials.
The chaos in global shipping has also contributed, with the cost of a container from China reportedly increasing from £1,800 a year ago to £8,640 today.
A long-standing lack of skilled builders is also pushing up the price of labour and forcing households to wait several months to start projects.
