Lucy Fulmer, PwC’s Creditor Markets lead, reflects on healthy order books versus cost inflation issues, highlighted in the March PMI Construction Index, released today:
“March’s results build on an increasing optimism within the industry, with a continued rise in the UK’s Construction output. Clients are reporting that sales are strong and order books full, as mirrored in today’s statistics. However, the unprecedented cost inflation issues including: material, labour, haulage and energy prices are impacting on net margin.”
“To weather this storm, we’re finding that clients are looking to approaches such as increased product standardisation, increased competitive sourcing and implementing temporary surcharges to pass on cost increases and negotiating ‘cost plus’ instead of fixed price contracts.”
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 156 countries with over 295,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at PwC.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see how we are structured for further details.
© 2022 PwC. All rights reserved
Manager, media relations, PwC United Kingdom
Tel: +44 (0)7483 422914