Inflation has reached levels not seen since the 1980s, and the construction industry has been hit hard, according to constructionexec.com. In addition to inflation issues, construction leaders are combatting supply chain challenges and labor shortages.
Vistage’s recent research shows 96% of construction CEOs are experiencing increased vendor prices because of inflation. Eighty-seven percent report higher costs for raw materials and other inputs, and 84% anticipate their prices will rise during the next year.
Following are three top considerations for managing through inflation.
Despite industry challenges, Vistage research shows 41% of construction CEOs expect to increase revenue during the year ahead. And a 2022 Deloitte survey of U.S. executives and other senior leaders in construction found 91% of respondents characterized the business outlook for their industry as somewhat or very positive, which is 23% higher than last year.
Managing thoughtfully through ongoing inflation, labor shortages and supply chain issues can help your company face future challenges.