Contractors report record cost pressures and supply concerns

Civils contractors have warned that although the infrastructure sector is continuing to drive economic growth, record cost pressures and supply concerns are being reported as ongoing challenges for the industry.

Results from the Civil Engineering Contractors Association (CECA)’s quarterly Workload Trends Survey for 2021 Q2 found that while civils workloads remain buoyant, a record proportion of British firms cited issues with the supply of materials and products (73%).

Costs and tender price balances have also hit an all-time high, threatening to undermine the sector’s ability to deliver the projects and jobs necessary to drive the UK’s continuing economic recovery.

CECA chief executive Alasdair Reisner said: “It will come as no surprise to anyone trading in the infrastructure sector at the moment that CECA members are experiencing rising costs and tender prices. While it is to be welcomed that order books in the industry are showing sustained growth, the challenges associated with the COVID-19 pandemic and Brexit continue to place businesses under pressure.

“We call on government to work with industry to identify practical steps that can be taken to alleviate these concerns, and ensure that the infrastructure sector is able to deliver the planned  pipeline of investment as efficiently as possible, to the ultimate benefit of businesses and communities in all parts of the UK.”