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Price hikes of between 10 and 20 per cent are expected on building materials such as cement, concrete, mortar and asphalt from the start of 2006 following a steady rise of input costs to manufacturers through raw materials, transport and fuel.

This alongside consistently high wage awards for the construction labour market will undoubtedly result in tender prices in the UK again reaching double digit levels in 2006.

Hanson, Cemex, Aggregate Industries and the Tarmac Group have already warned customers about the increase, more are expected to follow.

Economic Research Unit
Franklin + Andrews

eru@franklinandrews.com