"On average, respondents reported a financial loss equivalent to 13.7% of their construction pipeline in the past year. That amounts to $2.1 billion per organisation - enough to fund two major hospitals or build 40 high schools in an advanced economy. Applied to global construction spending, that loss equates to a total of $2.5 trillion - more than the GDP of Italy and almost twice the combined annual revenue of Apple, Amazon and Microsoft."
"The findings highlight the growing strain uncertainty is placing on construction delivery. Over the last year 32% of construction projects were descoped, 29% were delayed and 25% were cancelled. Just 1 in 5 (20%) construction leaders are completely confident that they can keep their projects within budget in the current climate. The primary risk factors driving uncertainty are material cost inflation, energy price volatility, supply chain disruption and labour and skills shortages. And volatility shows no sign of easing."
Over 1,000 global construction decision-makers responsible for pipelines averaging $12.9 billion reported significant losses from uncertainty. Respondents experienced an average financial loss equal to 13.7% of their construction pipeline, about $2.1 billion per organisation, translating to $2.5 trillion across global construction spending. Project outcomes over the last year included 32% descopes, 29% delays and 25% cancellations. Only 20% of construction leaders are completely confident in keeping projects within budget. Primary drivers of uncertainty are material cost inflation, energy price volatility, supply chain disruption and labour and skills shortages, with many leaders expecting worsening volatility.
Read at London Business News | Londonlovesbusiness.com
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