The Tile Association (TTA) has issued an open letter to the Construction Products Association, Build UK and the Construction Leadership Council’s Material Supply Chain Group, highlighting the immediate and growing impact of the ongoing conflict in the Middle East on the UK tiling sector.
Representing manufacturers, contractors, retailers and installers across the industry, TTA has raised concerns about rapidly increasing costs, supply chain disruption and weakening market confidence.
Members are already reporting significant cost pressures, including fuel surcharges of approximately 12.5%, rapidly rising energy costs and shipping cost increases of more than 150% in recent weeks. Members are also experiencing sharp increases in energy costs, with some reporting gas prices nearly doubling in a matter of weeks creating significant additional pressure for energy-intensive processes.
The sector relies heavily on imports and in some cases, containers are delayed or stranded in key transit routes, while production of tiles in parts of India has been disrupted due to energy shortages.
The volatility in shipping markets is particularly acute. One member reported that a container typically costing $3,500 rose to $11,000 within weeks, was negotiated to $9,500, and then cancelled by the shipping line due to excess demand! The next available shipment was quoted at $18,000. With no alternative suppliers and only 4–6 weeks of stock remaining, this would necessitate a price increase from £150 to £230; an uplift that is likely to create significant challenges with customers.
These developments are beginning to feed through into material prices.
At the same time, TTA members are reporting that customers are delaying ‘big ticket’ purchases due to uncertainty around energy costs and the wider economic outlook, further weakening demand across an already fragile construction market.
Despite rising costs, many businesses are currently unable to pass increases on, raising concerns that the sector may face a period of sudden and widespread price adjustments if conditions persist.
In its letter, TTA has urged that these early indicators are communicated to Ministers as a matter of priority.
Kay Porter, Chief Executive Officer of The Tile Association, said: ‘We are seeing real-time impacts across the tiling sector from sharp increases in shipping and energy costs, to disruption in supply chains and weakening demand. These are not future risks; they are happening now.
It is important that Government is made aware of the cumulative effect these pressures are having, particularly given the already challenging conditions within construction. Early recognition and support will be key to avoiding further damage to the market.’
TTA will continue to monitor the situation closely and engage with industry partners and Government as developments unfold.
