Building boom at seven-year high

The report said investment in UK construction was at its highest since 2000. Despite this, the CPA claimed the £40bn-a-year construction products industry would be able to meet the demand for materials.

The CPA compiled the report in response to fears that the industry might overheat because of the current boom and large construction projects, including the 2012 London Olympics.

Allan Wilén, economics director at the CPA, said: “There have been instances earlier this year where a few companies in specific sectors have had difficulties supplying the UK demand for products, but these were the results of short-term constraints, not long-term structural deficiencies in the industry.”

Cement, timber, steel and glass are among the products that have been in short supply.

Manufacturers and suppliers have added 10% to capacity in the past two years and the CPA expects that to increase by 9% over the next two years.

Investment in steel, cement and plasterboard are thought to be sufficient to ensure that demand does not outstrip supply.

The CPA urged the government to provide a clear programme of investment in the Comprehensive Spending Review this autumn.

Wilén added: “We are concerned with the longer term capacity constraints caused by inadequate road and rail infrastructure.”