It is clear that now, more than ever, there is a consistent need to revise and revisit project budgets set in 2021 (or last month, for that matter). Inflation and the war in Ukraine have disturbed an already turbulent market.
McKinsey’s Global Survey found that geopolitical instability is now cited as the top risk to economic conditions.
High inflation remains a primary global concern, with Eurostat predicting annual inflation to be 7.5 percent in March 2022 in European member states, up from 5.9 percent in February 2022. Concerns persist with the rising cost of materials and labour shortages across the construction industry.
Unprecedented increases in the price of steel, gas, oil and aluminium are the result of enormous demands from the world’s largest economies in this unrelenting boom in the global raw materials market.
With today’s unrest, it is critical that supply chains and cashflow forecasting be (re-)assessed to mitigate the negative pressures placed on current developments.