A survey by construction consultant Gleeds has found that escalation of costs is regarded as the biggest threat to the industry – 77% of contractors believe that growth is suffering as a result, Gleeds found.

Contractors were asked about opportunities to tender. In the third quarter of 2022, 27% said opportunities had increased and 10% said they had decreased.

In the fourth quarter, only 13% saw an increase but 27% saw a decrease in opportunity. (The percentage seeing no change dipped from 63% to 60%.)

Issues around availability of labour also persist, with 60% of contractors in the survey experiencing problems. However almost half were optimistic that concerns around the availability of materials were beginning to settle.

Gleeds chief executive Graham Harle said: “Our report reveals that spiralling costs of materials and labour show no signs of abating, although there is some hope that availability of both is stabilising compared to the previous quarter. It seems inevitable that the turbulent political backdrop will impact investor confidence, and the prospect of a recession has led to predictions of a decrease in tender opportunities going into Q4.”

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