Rising Fuel Costs Add to Pressure on UK Scaffolding Sector, NASC Survey Reveals
Rising fuel costs are continuing to place significant pressure on scaffolding businesses across the UK, according to the findings of a new NASC industry survey. The results paint a picture of a sector facing mounting operational costs, squeezed margins and growing concern about the future.
The survey, conducted among NASC members and wider industry stakeholders, found that almost half of respondents (49.2%) have experienced fuel cost increases of more than 20% so far this year. A further 44% reported increases of between 11% and 20%, demonstrating the scale of the challenge facing businesses that rely heavily on vehicle fleets, site visits and material deliveries.
Respondents rated the impact of higher fuel costs on their businesses at an average of 7.2 out of 10, with transport and vehicle costs overwhelmingly identified as the area most affected. Nearly 94% of respondents highlighted transport-related expenses as a key concern, while more than half pointed to negative effects on profit margins and site visits. Delivery logistics and project pricing were also cited as significant challenges.
Despite the sharp increase in costs, many businesses have been reluctant or unable to pass these additional expenses on to customers. More than half of respondents (57.1%) said they had not passed on any of the increased fuel costs, while only 1.6% reported passing them on in full. Instead, companies are absorbing costs, optimising delivery routes, reducing site visits where possible and reviewing estimating and pricing processes in an effort to remain competitive.
The survey also highlights widespread concern about the future. Businesses rated their concern about further fuel cost increases at an average of 7.9 out of 10, with more than 30% of respondents selecting the highest possible rating.
Commenting on the findings, Clive Dickin, Group CEO of NASC and CISRS, said:
"These results should concern everyone involved in the construction supply chain. Scaffolding businesses play a vital role in enabling construction, maintenance, refurbishment and infrastructure projects across the UK, yet many are being forced to absorb substantial increases in fuel costs at a time when margins are already under pressure.
"We are seeing a worrying number of insolvencies across the sector. Rising operating costs, combined with intense competition and limited ability to recover additional expenditure from clients, are creating real challenges for many businesses.
"The scaffolding and access sector is fundamental to the Government's ambitions for economic growth, housing delivery and major infrastructure investment. If the UK is serious about meeting its building targets, it must recognise the pressures facing the businesses that make those projects possible.
"We would urge Government to consider what practical measures could be introduced to provide relief for construction and access businesses, whether through fuel-related support, targeted tax measures or other initiatives that help firms remain resilient, invest in their workforce and continue supporting the UK's growth agenda."
The findings reinforce the importance of monitoring cost pressures across the scaffolding and access sector and ensuring that businesses are able to continue investing in the people, equipment and services needed to support the UK's construction pipeline.
