That’s the claim from accountants KPMG following the latest round of industry statistics.

The latest CIPS UK Construction PMI revealed that the availability of subcontractors had fallen at its fastest pace for 17 years as demand outstrips supply.

Richard Threlfall, KPMG UK Head of Infrastructure, Building and Construction, said: “This is leading to increased supplier lead times and higher rates.

“It will be a cause for real concern amongst main contractors that rates charged by subcontractors have increased at the steepest pace since the survey began 17 years ago.

“The construction supply chain took most of the pain during the recession, with many businesses going bust and output falling 20% below its peak.

“But over the last year demand has picked up sharply and main contractors are having to compete for the reduced capacity in the market.

“Now it is main contractors taking a thrashing and the supply chain holding the whip.

“Main contractors’ difficulties are compounded by the shortage of skilled labour, and rapidly rising demand for construction materials which must soon translate into a further upswing in materials inflation.”