Standfirst: As supply chain disruption and rising costs continue to impact the architectural aluminium sector, Nigel Headford, CEO at CAB, says good communication with suppliers, careful cash flow management and a focus on quality are key to weathering the storm.
Feature: From the COVID pandemic to overseas wars, spiralling costs to changing regulations, the aluminium in building sector has faced unprecedented challenges in recent years.
Ongoing disruption in the Strait of Hormuz, following the US-Iran conflict, has created a ripple effect that has seen material costs surge and the passage of raw materials restricted. With more than five million tons of aluminium passing through the Strait each year, aluminium prices have risen sharply as a result, with global and regional benchmarks skyrocketing.
With the Construction Products Association (CPA) forecasting UK construction output to fall by 4% in 2026, followed by meagre 0.4% growth in 2027, higher oil and energy prices are also set to keep inflation and interest rates buoyant for longer than previously anticipated.
For businesses across the aluminium in building supply chain, this creates continued uncertainty.
As an internationally traded raw material, aluminium is particularly sensitive to global supply and demand, energy prices, production capacity and geopolitical developments. Energy-intensive to produce, increased electricity, fuel and transportation all take their toll on the aluminium manufacturing and distribution process.
As this perfect storm continues, the challenge for the industry is how to navigate increasing material and operating costs and still achieve margin, as customers remain subject to strict project budgets. Higher borrowing costs can make new projects harder to finance and with construction output predicted to remaining sluggish in the months ahead, competition for available work is likely to remain intense.
Under these circumstances, businesses need a clear understanding of their costs, purchasing arrangements and exposure to market volatility.
While regular communication with suppliers, careful cash-flow management and realistic project pricing can help businesses make informed decisions, procurement should not be based on price alone. A cheaper supplier may not offer the same reliability, technical support or consistency of product, creating a false economy. Relying on supply chains that offer little flexibility or visibility is also risky.
It is also important for manufacturers and fabricators to know where their materials come from and where delays are most likely to occur. This makes it easier to identify alternatives before disruption escalates. In turn, suppliers need to be open about lead times and potential price changes, while customers should provide realistic forecasts.
Early engagement with system companies, fabricators and specialist suppliers can also help to identify potential availability issues, establish viable lead times and ensure that products are right for the intended application.
As a durable, versatile and highly recyclable material, retaining its inherent properties through repeated reprocessing, recovering and reusing aluminium can reduce demand for primary production and keep valuable resources in circulation. This makes sustainability an important consideration, especially in the face of current pressures.
The CAB Closed Loop Recycling Scheme ensures that aluminium scrap, such as old aluminium window and door extrusions, is collected, sorted, and remelted into the exact same alloy groups for higher quality, higher value scrap, while also lowering the embodied carbon of construction projects by cutting energy consumption.
This is particularly relevant ahead of the UK’s Carbon Border Adjustment Mechanism (CBAM), scheduled to begin on 1 January 2027, which will introduce carbon-pricing obligations for specified imported goods, including aluminium.
Investing in skills, improving manufacturing efficiency and keeping technical knowledge up to date will also help businesses remain competitive through periods of lower activity, better preparing them to take advantage when things bounce back, as they inevitably will.
As the trade association representing the architectural aluminium sector, CAB recognises the importance of helping our members navigate these challenges, share knowledge and maintain best practice, even in the toughest conditions.
While we can’t control energy prices, global commodity markets or interest rates, we can take practical steps to improve our resilience, from strengthening supplier relationships to making better-informed decisions about procurement and specification.
The immediate outlook is challenging, and recovery will take time but with careful planning, good communication and a focus on quality and long-term value, we are confident that the aluminium in building sector can successfully weather the storm and emerge in a stronger position.
For more information about CAB, visit www.c-a-b.org.uk or email enquiries@c-a-b.org.uk.