Influential studies have been found, while construction subcontractors are charging more, while supply shortages are pushing up contractors’ material costs.
The UK construction industry is slow growing and production is increasing, but at the lowest level in eight months.
The IHS Markit / CIPS UK Construction Purchasing Managers’ Index (PMI) scored 52.6 in the September sector, down from 55.2 last month.
This is the lowest score in the index since the beginning of the year, but it is still in the positive territory. Anything over 50 is considered growth.
The companies surveyed said the slowdown was due to widespread publicity of supply chain issues, but due to softening demand.
Research has shown that unpredictable prices delay some customers in deciding who to give a contract to.
This sector is currently facing a labor crisis. Companies have been hiring fast since the beginning of the year, but despite the many jobs created, they now have to wait a long time to fill the vacancy.
This is exacerbated by a shortage of subcontractors, which in turn is pushing up the prices of employment contractors.
Many companies (78%) say costs increased last month.
Group Director Duncan Brock said: At the Chartered Institute of Procurement & Supply (CIPS).
He added: “Good news for job seekers, as companies wanted more, as demand for skilled workers remained undiminished.
“Subcontractors were unable to close the growing needs gap as availability declined and billing prices accelerated to record levels.
“Unless we strengthen supply chain performance and reduce headcount, we are heading into a stagnant fall as the sector is definitely not stable at this time.”
Graham by august
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