Inflation forecasts

Most respondents (30%) identified investor confidence as the biggest threat to the construction industry. Following this, they cited interest rates and inflation as the second most significant challenges, with labour availability ranked as the third-highest issue.

Nearly all respondents (97%) reported that inflation is impacting the viability of projects. High inflation squeezes budgets, putting pressure on the delivery of expected outcomes.

While the figures above reflect typical construction tender price inflation, it's important to consider inflation on a case-by-case basis. Factors such as project size, sector, specification, and procurement and tendering strategies can significantly influence tender prices. Additionally, understanding regional and sector-specific market dynamics is crucial, as these affect supply chain appetite and pricing.