Savings passed on to clients

There have been many challenges during these unprecedented times. Nevertheless, as demand for some building materials falls, there have also been opportunities to make savings, which Aspire is passing directly on to clients. Andrew Grant MCIOB, Director and founder of Aspire Construction & Property Ltd explains how and why…

At Apsire, we always operate with a benchmarked chain of supply. In other words, we routinely evaluate prices from all suppliers and contractors to ensure that they are always delivering the very best value for money. Furthermore, we pass this value directly on to our clients.

This highly attuned approach to our supply chain means that we can quickly assess how and where to making savings. Most importantly, these savings are passed directly on to clients because this process is what makes us competitive.

While there have been some reports that the cost of building materials has risen, this has not been the case in our experience at Aspire.

A significant part of our expertise relates to successfully managing the supply chain in all market conditions. Constantly keeping a finger on the pulse in this way means that we are quick and agile in our response.

In terms of a project we’re working on, this means that if one material cost rises, then rather than just accept it, we will automatically look for ways to counterbalance it. In terms of overall market conditions, when material costs generally decrease, as they have during these unusual times, then we make a point of reflecting these savings in how much our clients pay. This approach matters because it is the correct, fair and competitive way to operate.

The latest ‘Monthly Statistics of Building Materials and Components’ report was released by the Department for Business, Energy & Industrial Strategy on Nov 4th 2020. According to that report, there were significant decreases in sales and deliveries of key buildings supplies when compared with 2019.

One of the headline findings was that “there was a 15.0% decrease in brick deliveries in September 2020 compared to September 2019… The month-on-month change shows a 1.8% decrease in September 2020.”

Similarly, while sales of sand and gravel increased by 37.3% in Quarter 3 2020 compared to Quarter 2 2020, this followed “a decrease of 36.5% in Quarter 2 2020.” Furthermore, when comparing 2020 with 2019, the report states: “Comparing Quarter 3 2020 to the same quarter in the previous year, sales [of sand and gravel] have decreased by 16.8%.”

Overall, when demand drops significantly within a market then prices fall. In our business, a key aspect of my role is to continually assess the market and our supply chain to ensure that our clients get the very best prices possible. Thankfully, having the bedrock of years of experience of reading the market and managing a supply chain is standing us and, more importantly, our clients in good stead throughout this pandemic.