Leadership Council acts on inflation conflict

The CLC, representing government and industry organisations, is worried by the impact that inflation is having – and might yet have – on construction industry productivity and supply chain relationships.

Russia’s invasion of Ukraine crisis has compounded existing challenges of materials’ supply and prices, caused by the after-effects of Covid-19, escalating global demand, and supply chain disruptions. This has resulted in shortages and cost increases of 50% reported for some products in recent weeks.

The Construction Leadership Council has explored what it can do to offer some respite.

The CLC’s plan includes:

  • developing market intelligence about risk hotspots
  • publishing guidance on price inflation indexation, and commercial issues
  • preparing case studies on good practice in response to current inflation
  • running industry briefings on conflict avoidance
  • researching long-term capacity loss from Ukraine, Russia and Belarus, and impacts on sector.

Further information will be published in the coming weeks, it said.

Council member Mark Reynolds, from Mace Group, said: “Across our industry we are seeing businesses facing real challenges with inflation that are well above those seen in the sector for many years. There is no one party that can tackle this issue alone and we can’t pass the problem on to others to solve. We all must work collaboratively – clients, contractors and everyone in our supply chain – to provide support where possible to limit the impact on firms nationwide.”

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