The 15th instalment of Turner & Townsend's International Construction Market Survey is live and shows London re-entering the top ten most expensive cities for construction globally as labour shortages push up prices.
Construction costs have risen significantly throughout the UK over the past year, despite cooling inflation. Price escalation has not been limited to the capital, though – Manchester, Bristol, Birmingham and Belfast have each seen increases in construction costs. This reflects the sector’s growing capacity squeeze, as it struggles to make up the workers for those lost following Brexit, the pandemic and a continuing stream of retirements.
We’re seeing a rise of the green specialist across the UK which also comes at a cost. Hundreds of thousands of newly trained specialists are required to give the sector the capacity it needs for the green transition. But green construction cannot afford to be in a separate tier of costs from traditional work.
Despite these challenges, there is a sense of optimism for the future across the sector. The construction sector’s hope is that pent-up appetite to invest will be unlocked in the coming months as greater clarity around government policy emerges following the 4 July election and the hope of a potential Bank of England cut to interest rates.
To prepare for upcoming opportunities, tackle the supply crunch and mitigate the effects of price rises, the industry must invest now in building and training the pipeline of skilled workers we need, and adopt innovative digital tools to improve productivity and outcomes.”
Read the full report below.
#construction #economics #inflation
Our 15th International construction market survey is now live: https://bit.ly/4c5qRn2
Covering 91 global markets, the research provides a global outlook on cost trends in the construction sector.
Our 2024 report shows construction markets emerging from a challenging period of inflationary pressure, volatility and disruption.
Despite the tough conditions, the construction sector has proved resilient with steady levels of activity in most markets and key sectors such as advanced manufacturing, data centres and healthcare holding up demand.
Our data points to slowing construction cost inflation over the past 12 months. Although risks remain and skills challenges widely persist, greater pricing stability increases confidence and allows fresh investment to flow into construction pipelines.
Read this year’s report to access the latest construction data and insights.
#construction #economics #inflation
(Corporate/business advisor on Asean mrt & subway development/contract management :having project experience in China, Asean, UAE, Australia) focusing on infrastructural/ subway, commercial/contracts role
1moInfo on the construction cost in most cities doesn't consider the construction of mass rapid transit and subways