Why prices have had to move

SIP panels are not a commodity product with one simple raw material behind them. A finished panel depends on multiple cost layers working together: insulation core, OSB facings, adhesives, machining, transport, packaging, energy, labour and logistics. When the cost of those inputs moves sharply, panel pricing cannot stay flat indefinitely.

The biggest pressure point remains PIR insulation. PIR boards are tied into petrochemical feedstocks, energy-intensive production and global freight. That means they are exposed not only to demand in the UK construction market, but also to wider energy and transport risk. The ongoing instability affecting the Middle East is one of the reasons those markets are still under pressure. This is not about making a political statement. It is simply a fact that when energy routes, chemical inputs and freight conditions become more volatile, the pricing of materials like PIR becomes less stable and usually moves upward.

In practical terms, that means manufacturers and distributors have pushed further increases into the market. Those increases have now reached a point where they have to be reflected in SIP pricing if the panel system is still going to be supplied properly and consistently.

Why this is not a margin exercise

Customers are right to ask whether a price increase is really cost-led or whether it is just opportunistic repricing. In our case, this is a cost-led change. We would much rather keep pricing stable, because stable pricing is easier for customers, easier for quotes, and easier for project planning. The problem is that stable customer pricing is not possible when the upstream cost base has already moved materially.

We have been absorbing what we can for as long as we can, but that only works up to a point. If supplier increases continue to land on PIR, transport, and associated panel components, the final SIP price has to be adjusted to keep the product viable and the service level consistent.

That is why this update is best understood as a market response rather than a commercial tactic. It is a correction to the input cost base we are now being asked to buy at.

Why the increase is 15%

The 15% rise reflects the latest supplier movements now flowing through to our production costs. It is not that every single line in the supply chain has gone up by exactly 15%, but the combined effect across PIR insulation, associated materials, freight, and broader production pressure has been enough that a meaningful adjustment was required across the SIP panel range.

We do not think it is helpful to pretend these changes can be ignored or hidden inside vague allowances. It is better to be transparent. The market has moved. Suppliers have moved. We have had to move with it.

What this means for customers

For anyone planning a SIP project, the practical impact is straightforward. The cost of a panel shell is now higher than it was before the April change. That affects direct panel supply, garden room kits, extension packages and any quote that is materially tied to live SIP pricing.

• Quotes now need to be read against live supplier-backed pricing rather than older assumptions.
• Long validity periods are harder to hold when the cost base is still moving.
• Projects that are ready to proceed benefit from moving quickly rather than waiting for further supplier shifts.
• Early technical coordination matters more, because delays between design sign-off and order placement can now carry more pricing risk than they used to.

That does not mean every project should be rushed. It means customers should make decisions with a realistic understanding of the current market instead of assuming insulation and panel pricing will remain static.

What we are doing to reduce future cost pressure

The important part of this update is not just that prices have moved. It is what we are doing next. We are actively reviewing alternative suppliers and product lines so that we can keep panel quality where it needs to be while looking for real cost efficiencies.

On the insulation side, we are reviewing alternative PIR brands and supply routes to see whether we can reduce the input cost without falling below the performance standards we require. That review is not just about buying whatever is cheapest. It has to work technically. That means looking at thermal conductivity, compressive strength, supply reliability, consistency, and whether the product makes sense inside the panel system as a whole.

On the OSB side, we are also reviewing alternatives including Smart Ply. This is important because if we can reduce cost on the board facings without reducing product performance, that is one of the clearest ways we can give some of that value back to the customer.

Smart Ply vs Sterling OSB3

We have already looked at the technical side of this comparison, and the position is straightforward. Smart Ply and Sterling OSB3 sit in the same structural OSB/3 class and, on the declared values we reviewed, they are effectively identical in the areas that matter most for this type of use.

• Thermal conductivity is effectively the same.
• Structural OSB/3 performance is effectively the same.
• Moisture-related OSB/3 performance is effectively the same.
• The practical differences are more about brand, manufacturing source and supply route than about a meaningful performance gap.

So if Smart Ply offers a real supply-side saving without compromising the panel, that is exactly the kind of substitution we are prepared to look at. The key point is that any change has to be technically defensible first. We are not interested in chasing a lower material cost if it weakens the finished product. But where materials are genuinely equivalent in performance, there is no reason not to use that competition to reduce cost.

Will savings be passed on?

Yes. That needs to be explicit.

Where we can make a genuine saving through alternative PIR brands, better supplier terms, equivalent OSB products, or more efficient sourcing, we will pass that saving on to customers. That is the right way to deal with a volatile market. If costs go up, pricing has to reflect that. If costs come down in a way we can actually secure and repeat, customers should benefit from that too.

We are not trying to hold onto a higher number just because the market has been difficult. The goal is to keep the product technically strong, commercially realistic, and as competitive as we can make it without pretending the upstream cost pressure does not exist.

Keep an eye out for new insulation SIPs

One of the likely outcomes of this review process is that customers will start to see additional SIP options or revised product lines as we test and approve alternative insulation routes. If we introduce new insulation SIPs, it will be because they meet the performance threshold we require and they help us build a better long-term value position for customers.

That means it is worth keeping an eye on our product range, configurator pricing, and future updates. The current 15% increase reflects the market as it stands today. It does not mean the supply chain will never improve. If stronger buying routes open up, or if material competition improves, we want to be in a position to act on that.

The practical takeaway

The market has changed, and our pricing has had to change with it. That is the reality of SIP manufacturing when core materials like PIR are under ongoing supplier pressure. We know this is frustrating for customers, especially on projects that have been budgeted months in advance, but it is better to be direct about what has happened than to pretend there is no change.

The short version is this:

• Our SIP panel prices have increased by 15% from April 2026.
• The increase is being driven by supplier cost pressure, not by a casual pricing decision on our side.
• The biggest issues remain PIR cost, freight exposure, and wider supply-chain instability.
• We are actively reviewing alternative PIR suppliers and equivalent OSB brands such as Smart Ply.
• Where we can make a real saving without sacrificing performance, we will pass it on to customers.

What we will keep watching

• Further PIR supplier notices and availability shifts
• Freight and logistics pressure affecting board supply
• Equivalent OSB sourcing opportunities
• Competitive alternatives that meet the same technical standard
• Where the market actually softens enough for savings to be passed back on