Rider Levett Bucknall’s 2nd Quarter 2022 International Report shows pressures in regional construction markets as demand post Covid-19 is affected by the continuing global production and supply chain issues.
According to RLB’s Q2 2022 International Report:
- Pent-up demand for key materials as global construction activity resumed has further exacerbated the supply chain issues
- Pandemic-induced supply shortages persist, affecting key materials such as timber, paint and coatings, aluminium, steel, and cement, among others
- Delays at major Chinese ports have caused a spike in freight costs, which remain—on average—three to five times higher than 2020 levels
- Disruption from the Ukraine conflict is exacerbating existing supply chain issues in the region with the price of energy and oil, as well as many other key construction commodities such as steel, rising again after a relative lull toward the end of 2021
RLB Global Chairman Andrew Reynolds comments,
Despite all regions making good progress and experiencing strong demand post Covid-19, we’ve identified common challenges facing the global construction industry. These include significant cost escalation; global delivery uncertainty; climate change and aberrant weather events that are causing significant construction delays; shortages of construction professionals and skilled labour to deliver committed and future projects; and increasing levels of financial instability across the industry.
“All these downside risks are driving up construction prices, yet we also know that projects need to continue as the demand and need for quality buildings continues to ramp up. What is clear is that scenario planning is needed to help navigate the uncertainty that we believe may well remain on a local level in the short-term.”
RLB’s Q2 2022 International Report shows that since the beginning of 2022 the industry has experienced a high degree of short-term uncertainty globally, with each region responding to its own specific combination of the identified challenges.
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