Construction Industry Cost Drivers
In June 2020, GLG launched Network Surveys, its syndicated survey series designed to deliver our clients fresh insights on trending topics. Since then, our team has produced more than 200 surveys across more than 60 industries, including hotel operators, grocery chains, medtech, construction cost inflation, and vet clinics.
In 2022, GLG conducted a Network Survey to understand the challenges and opportunities facing the construction industry and what might be influencing the industry’s recent cost inflation. We partnered with a former construction industry CEO to design the survey, and then we fielded it to senior European executives.
Survey and Panel Demographics
GLG surveyed 50 senior executives (equally split amongst the United Kingdom, Germany, France, Italy, and Spain). Of those surveyed, 32% were C-suite executives, 48% directors or heads of department, 12% vice presidents, and 8% managers.
This year, when we asked our panel what they thought was the main cost driver, 56% of repondents cited “energy” as playing the largest role, up from 18% in 2021 and just 2% in 2020. This is a stark difference from previous surveys when respondents saw “raw materials” as the major cost drivers.
The survey also captured the respondents’ views on the space going forward, the extent of inflation in the construction industry, and how costs may continue to change.
Examples of other findings:
- The majority of respondents (60%) believe that the greatest cost changes along the supply chain have been seen in construction materials.
- 86% of experts expect further cost increases within the remainder of 2022.
GLG provides off-the-shelf analysis of the most pressing topics in the market. Complete the form to get access to this and other GLG Network Surveys.