Insulation Price Increases

Price Increases of Insulation

The cost of home insulation has been rising steadily over the years which has created concern for contractors, builders, homeowners, and many others within the construction industry. The increases have impacted new construction and renovation projects as well as plans to improve energy efficiency and sustainability within a multitude of properties and buildings. For anyone effected by the frequent price increases, understanding the factors behind them and how to manage going forward is essential.

Price increases on insulation materials across brands throughout the industry has seen between 15 to 20 increases with all manufacturers per year. Due to a variety of factors that impact the supply chain and manufacturing costs, 2023 to 2024 has seen a range of price spikes across brands and suppliers. Celotex for example since 2023 has seen three increases of 10% and is due to go up another 8% in June with more to follow throughout the year. Kingspan Therma range has also three 10% increases and another 7.5% increase is expected in June.

Here below are some of the key factors driving price increases:

• Raw Material Costs: Insulation materials including fibreglass, cellulose, and foam depend on raw materials such as recycled paper and glass. The prices of these materials have seen increases due to an increased demand for recycled materials and environmental regulations that can limit production.
• Supply chain: A huge factor behind the increases is the global supply chain disruption. Following the COVID-19 pandemic came significant delays and material shortages. The ripple effects as the world recovers gradually are still affecting many. Transportation, labour shortages, and a slowdown in production have contributed to the prices rise of insulation materials.
• High Demand: Insulation materials have been in high demand as people look to insulate their homes in order to save on energy costs and reduce their carbon footprint. This can be achieved by installing insulation within the building envelope to reduce the levels of heat escaping, therefore causing a surge in demand and a spike in prices.
• Regulatory changes: The regulations for new builds aim to improve energy efficiency and often require a higher standard of insulation in comparison to existing buildings. This will have long term benefits for the environment however increased material costs.

What is the Impact of Price increases on Homeowners and Contractors?

The rising cost in insulation materials can mean higher expenses for both construction and renovation projects impacting both homeowners and construction industry workers. Insulation is an essential component to office and home spaces resulting in long term savings and energy efficiency.

For contractors and builders, increases in material costs can affect profit margins particularly in competitive markets where passing the costs over to customers is not always achievable. Contractors and builders must also navigate the challenges of supply chain delays that can prolong project timelines, affecting increases that may be put in place differing from the original costs discussed with the customers. For homeowners, the rising cost of insulation materials may mean they need to adjust their budget or seek alternative finance options to meet higher costs.

Strategies

Despite the challenges that arise alongside what seem to be the never-ending price increases, there are multiple strategies that homeowners and contractors can apply to help manage the costs.

Here below are some of the strategies to save costs:

• Bulk Buy: If you have the space, purchasing insulation materials that are a must have for most of your projects can result in cost savings. Contractors in particular will benefit from this. Contractors may be able to negotiate bulk purchase agreements with suppliers, or alternatively keep an eye out for sale items and stock up then.
• Plan Ahead: Planning for future projects as soon as possible including buying materials can lead to costs savings by avoiding last minute spikes and ensuring product availability. Looking ahead to future price increases will also help to secure materials in advance of prices rising.
• Energy Savings: Energy bills overtime will decrease in price following on from the insulation install. The savings may offset the upfront cost which can result in a good investment.
• Alternative materials: Alternative insulation materials that are not overly affected or less affected by the price increases may offer costs savings dependant on project requirements.
• Governments incentives: Find out if you are eligible for government grants such as the ‘free home insulation grant scheme’ or the ‘loft insulation scheme’ to see if you are eligible for a discount.
• Check Our Website: Keep an eye out on our website for sale prices and discounts. You can also sign up and subscribe to our monthly newsletter where we will send updates on current or upcoming deals. We also do our best to keep all of our customers in the know when it comes to upcoming price increases.

Upcoming Price Increases:

Price increases to look out for this year are seen across brands including Kingspan, Ecotherm, Recticel, and Celotex, ranging from 4% and up to 10%. Details of price increases can be found on the trade insulation website using the following link – Insulation Price Increases