SafeSite Facilities has conducted a survey to find the largest issues facing projects and businesses
Of the 500 respondents to the survey, 27% said that rising construction material costs are the number one problem for continued operations.
Other issues include climate change, with the survey suggesting while not the main issue, climate change is the main threat multiplier.
“This pressure is only going to get worse”
The survey respondents also said that poor site safety standards and environmental sustainability pressures are key issues.
The full list of issues facing the industry in rank order:
- Rising material costs 27% (up to 38% in residential construction)
- Poor site safety standards 23%
- Environmental sustainability pressures 22%
- Theft and vandalism 21%
- Supply chain disruption 21%
- Skills shortage 20%
- Labour shortages due to immigration policy changes 20%
- Regulatory complexity and red tape 19%
- Delays due to weather and climate events 19%
- Lack of adoption of innovation and technology 18%
- Mental health challenges 15%
Jack Lowdell, manager at SafeSite Facilities, said: “The evidence points to a sector facing a double threat from the soaring cost of materials and climate change.
“Analysts are currently predicting building costs will increase by a predicted 15% over the next five years, so this pressure is only going to get worse, adding to the difficult set of challenges the industry needs to overcome.
“As a sector we must prepare for the impact of adverse weather on site safety and ensure we are ahead of the game in terms of our environmental practices, then we can take back some control over the clear and present dangers which are in store.”
Dr Lowellyne James, HSEQ manager at SafeSite Facilities, said: “The findings reflect long-standing global research into systemic risks.
“As early as 2012, KPMG’s ‘Expect the Unexpected’ study identified climate change as the ultimate threat multiplier, exacerbating everything from supply chain disruptions to rising material costs.
“What’s concerning is that despite climate-related challenges dominating this list, the sector has yet to fully prepare for these realities.
“Sustainability must become a strategic imperative, not a side initiative. If the industry embraces sustainability as a core business strategy on a par with cost leadership or differentiation, it can begin to mitigate many of the risks it currently faces.”
Construction material costs an existential threat in Northern Ireland
Last month, the Federation of Master Builders (FMB) released research finding that homeowners in Northern Ireland are the most likely in the UK to need a payment plan to hire builders.
15% of homeowners in the country have requested a payment plan from builders, while the average in the whole UK is 9%. Furthermore, 11% of Northern Irish homeowners have taken on a second job just to afford building or repair work.
Brian Berry, chief executive of the Federation of Master Builders, said: “It’s concerning to see that 15% of people in Northern Ireland have asked their builder for a payment plan and 11% have even taken on a second job to cover the costs – above the national average. When homeowners are forced to take on second jobs or request payment plans just to keep their homes safe and watertight, something has gone seriously wrong. It looks like basic home maintenance has become a luxury in Northern Ireland that many cannot afford.
“The cost-of-living crisis is creating a perfect storm, pushing up the cost of building materials and labour while squeezing household budgets to breaking point. What’s particularly alarming is that 37% of people in Northern Ireland have never hired a builder at all, suggesting many are living in homes that need repairs but which they cannot afford to fix.”
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