The summer months in western mainland Europe brought record temperatures, wildfires and inflation rates … but the end of the third quarter is quickly cooling down.

If we consider 2020 to be the most challenging of years for the construction industry in recent times, then the European Union monthly construction survey (Eurostat construction survey results) shows us optimism. Respondents indicate an expectation for the industry to improve during the next three months, which seems reasonable considering that shipping tensions eased, some raw materials pricing returned to 2021 rates and contractors achieved a better risk balance by negotiating price review clauses in new contracts. Steel sections and rebar pricing generally improved in comparison to 1Q 2022, confirming that the war’s initial impact balanced out — further seen as global commodities continued to recover over the summer, including aluminium and Brent oil.

The Organisation for Economic Co-operation and Development (OECD.org) has published updated inflation forecasts that show relief will come soon to consumer pricing, which will have some effect on the construction industry, although rising interest rates will add a new challenge as investors and contractors secure financing for new projects.

Unfortunately, the next quarter will bring new challenges, including the pending winter energy crisis and steel plant closures resulting from unbalanced supply and demand coupled with unsustainable operating costs.

But if local contractors are maintaining optimism, why shouldn’t we?

EDNA BENAVIDES

INSIGHTS & ANALYTICS, GLEEDS EMEA