Overstretched and over reliant construction market suffering skills shortage, report finds

By Dale Benton
The global construction market remains an overstretched and over reliant market, based on a major skills shortage becoming an ever-growing problem. In...

The global construction market remains an overstretched and over reliant market, based on a major skills shortage becoming an ever-growing problem.

In the latest International Construction Market Survey 2017 from Turner & Townsend, it is revealed that only four regions surveyed have what is described as a “surplus” of labour in 2017.

Those four regions are Muscat, Perth, Santiago and Sao Paulo.

The report reveals that of the 43 markets that were surveyed, 23 reported that they are suffering from a skills shortage, an increase on the previous year total of 20.

Of those 23 regions, Amsterdam, Brisbane, Singapore, Melbourne and London all feature, with the report suggesting that these regions have been over reliant on commodity export earnings.

Counter to that point, the four regions that are reported as to having a “surplus” of labour have achieved this as a result of a significant resources driven construction boom that has now ended.

Labour balance

Construction market costs on the increase

The report also reveals that the cost of construction inflation currently stands at 3.7 percent for 2016, but there is a forecasted average rise of 3.5 percent in 2017.

In advanced economies, 20 of the 25 markets saw construction costs rise by more than general inflation – the average price increase for these economies was 2.7 percent, with markets such as Dublin seeing cost inflation as high as 7 percent.

At the opposite end of the scale, Perth was the only market to see negative growth as construction costs fell by 2.0 percent after a period of significant growth during the resources construction boom of 2010–15, when the West Australian economy was one of the fastest-growing economies in the world. Now, the residential construction sector is in a slump, contractors are cutting prices as competition for work intensifies.

Brazil, Russia, and South Africa are towards the top of the list as a result of their relatively high rates of inflation of around 5–6 percent, which leads to pressure to increase wages and higher costs of materials and plant equipment.



Read the full report here: http://www.turnerandtownsend.com/en/insights/international-construction-market-survey-2017/

Also read:

Qatar’s construction sector – can it overcome current political pressures?

Turner & Townsend discusses UK Budget 2017

Infrastructure Australia launches a revised Infrastructure Priority List


Featured Articles

Bechtel Launches Carbon-Free Nuclear Power Plant

Bechtel partners with TerraPower and GE Hitachi technology, to build the ground-breaking carbon free nuclear power plant in Wyoming.

Major Construction Companies Invest in Modular Construction

Modular building is growing worldwide as major construction companies get on board, including Bouygues, Skanska and Katerra.

Construction Industry Demands new Financing Model

Major contractors like Balfour Beatty and Morgan Sindall are calling for a new financing model in the construction industry, to improve private investment.

German Construction Industry Crisis 'Worst in Generation'

Construction Projects

Wincanton: Construction 'can Learn From Retail Supply Chain'

Digital Construction

McKinsey: Tech can Help Construction Address Staffing Issue

Technology & AI