Doing more with less as inflation stalks construction

Soaring inflation has dramatically driven up the cost of construction. But there are reasons to be optimistic, says Simon Rawlinson, head of strategic research at Arcadis.

Construction cranes

Soaring inflation has led to dramatic fluctuations in the cost of construction in leading cities around the world, new research from Arcadis reveals. A combination of supply chain disruption, higher commodity prices and labour shortages has seen construction costs increase significantly in most locations, Arcadis warns, with inflation in the sector now at levels not seen for many years.

While the construction industry has a good record on adapting to the changing marketplace, the company advises it will now need to redouble its efforts in areas such as increased use of technology and modern methods of building. That will also support the industry’s efforts to become more sustainable, says Arcadis, which provides sustainable design, engineering, and consultancy solutions for natural and built assets in more than 70 countries, improving quality of life for people around the world.

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