Gleeds Q2 2016 Inflation Report: Business confidence remains at a high
Gleeds' latest economic and regional inflation report indicates that business confidence remains high, with a positive outlook for construction workload across most of the UK. Despite uncertainty around the upcoming EU Referendum, a number of large projects are reported to have recently started on site or are about to commence. Hinkley Point, London’s Whapping Wharf, Redcliffe Quarter in Bristol and King's Stables Road in Edinburgh, are all helping to boost the positive trend.
This quarter sees an easing of material shortages in some regions, however, labour shortages are still prevalent as capacity constraints continue to weigh heavily on the sector.
The trend towards two-stage tendering is now becoming unfavourable in a number of regions. With the speed of getting to site being prioritised, single stage and negotiated procurement routes are being used more frequently.