Warehouse costs to soar
April 1st 2007 Members of the Constructashed consortium, who represent some of the leading contractors and suppliers specialising in warehouse construction and fittings, have warned that inflationbusting rises in raw materials and utilities are forcing costs to rise well ahead of inflation. "The industry and our colleagues in Constructashed have been pretty successful in keeping labour and other controllable costs down to almost zero inflation with improved efficiencies and planning," says sbh.uk's Chris Berry. "But with worldwide commodity prices rising so fast and utility costs following suit – factors over which we have no control – the outcome could see costs going up by anything from 7% to 15%, depending on each individual project." David Smith from Alpine Fire Engineers confirmed material costs for sprinklers rose dramatically last year, with new legislation in 2007 adding another twist. "With only one diesel engine supplier currently able to meet thee new BS standards, waiting lists are stretching and he cost of compliance could add around £8000 to the cost of a twin diesel pumphouse. In addition, new mandatory water tank standards due in July will add around 30% to tank costs. Roof and mezzanine sprinkler costs are up by 16% and water supplies by 20%, so despite our best efforts, prices are bound to be ahead of inflation. Colt Group's costs are under pressure from steep rises in aluminium and copper adding at least 8% to the cost of a system, and Hathaway roofing confirms material costs rising at around 7%, despite keeping plant and labour increases below 2%. Kevin Louch from Stanford Industrial Concrete Flooring says it had to absorb a 10% rise in concrete prices and 6% on steel which will translate to a rise of between 7% and 8%. sbh.uk's Chris Berry says there are ways to control costs: careful planning and at the design stage to cover all possible eventualities. Saving on energy costs, which will keep rising, by investing in high levels of insulation and efficient systems will help offset increasing material costs. More articles from sbh.uk: | 
