Europe 2022

This section includes: 

UK - Economic indicators  

UK - Weather conditions  

UK - Political stability  

UK - Working hours and national holidays  

UK - Labour productivity  

UK - Labour costs  

UK - Output 2021 and 2022(f)   

UK - Long-lead equipment (LLE) – time risks  

UK - Construction health and safety practices and culture  

UK - Macroeconomic overview 

UK - Economic indicators

UK - Weather conditions

UK - Political stability

UK - Working hours and national holidays

UK - Labour productivity  

UK - Output 2021 and 2022(f) (in millions)

UK - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

UK - Construction health and safety practices and culture

This section includes: 

Denmark - Economic indicators  

Denmark - Weather conditions  

Denmark - Political stability  

Denmark - Labour productivity  

Denmark - Labour costs  

Denmark - Output 2021 and 2022(f)  

Denmark - Long-lead equipment (LLE) – time risks  

Denmark - Construction health and safety practices and culture  

Denmark - Macroeconomic overview 

Denmark - Economic indicators

Denmark - Weather conditions

Denmark - Political stability

Denmark - Working hours and national holidays

Denmark - Labour productivity  

Denmark - Labour costs

Denmark - Output 2021 and 2022(f) (in millions)

Denmark - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Denmark - Construction health and safety practices and culture

This section includes: 

Finland - Economic indicators  

Finland - Weather conditions  

Finland - Political stability  

Finland - Labour productivity  

Finland - Labour costs  

Finland - Output 2021 and 2022(f)  

Finland - Long-lead equipment (LLE) – time risks  

Finland - Construction health and safety practices and culture  

Finland - Macroeconomic overview 

Finland - Economic indicators

Finland - Weather conditions

Finland - Political stability

Finland - Working hours and national holidays

Finland - Labour productivity  

Finland - Labour costs

Finland - Output 2021 and 2022(f) (in millions)

Finland - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Finland - Construction health and safety practices and culture

This section includes: 

France - Economic indicators  

France - Weather conditions  

France - Political stability  

France - Working hours and national holidays  

France - Labour productivity   

France - Labour costs  

France - Output 2021 and 2022(f)  

France - Long-lead equipment (LLE) – time risks  

France - Construction health and safety practices and culture 

France - Macroeconomic overview 

France - Economic indicators

France - Weather conditions

France - Political stability

France - Working hours and national holidays

France - Labour productivity  

France - Labour costs

France - Output 2021 and 2022(f) (in millions)

France - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

France - Construction health and safety practices and culture

This section includes: 

Germany - Economic indicators  

Germany - Weather conditions  

Germany - Political stability  

Germany - Working hours and national holidays  

Germany - Labour productivity   

Germany - Labour costs  

Germany - Output 2021 and 2022(f)  

Germany - Long-lead equipment (LLE) – time risks  

Germany - Construction health and safety practices and culture  

Germany - Macroeconomic overview 

Germany - Economic indicators

Germany - Weather conditions

Germany - Political stability

Germany - Working hours and national holidays

Germany - Labour productivity  

Germany - Labour costs

Germany - Output 2021 and 2022(f) (in millions)

Germany - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Germany - Construction health and safety practices and culture

This section includes: 

Israel - Economic indicators  

Israel - Weather conditions  

Israel - Political stability  

Israel - Working hours and national holidays  

Israel - Labour productivity  

Israel - Labour costs  

Israel - Output 2021 and 2022(f)  

Israel - Long-lead equipment (LLE) – time risks 

Israel - Construction health and safety practices and culture  

Israel - Macroeconomic overview 

Israel - Economic indicators

Israel - Weather conditions

Israel - Political stability

Israel - Working hours and national holidays

Israel - Labour productivity  

Israel - Labour costs

Israel - Output 2021 and 2022(f) (in millions)

Israel - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Israel - Construction health and safety practices and culture

This section includes: 

Italy - Economic indicators   

Italy - Weather conditions  

Italy - Political stability  

Italy - Working hours and national holidays  

Italy - Labour productivity  

Italy - Labour costs  

Italy - Output 2021 and 2022(f)  

Italy - Long-lead equipment (LLE) – time risks  

Italy - Construction health and safety practices and culture  

Italy - Macroeconomic overview 

Italy - Economic indicators

Italy - Weather conditions

Italy - Political stability

Italy - Working hours and national holidays

Italy - Labour productivity  

Italy - Labour costs

Italy - Output 2021 and 2022(f) (in millions)

Italy - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Italy - Construction health and safety practices and culture

This section includes: 

Netherlands - Economic indicators  

Netherlands - Weather conditions  

Netherlands - Political stability  

Netherlands - Working hours and national holidays  

Netherlands - Labour productivity  

Netherlands - Labour costs  

Netherlands - Output 2021 and 2022(f)  

Netherlands - Long-lead equipment (LLE) – time risks  

Netherlands - Construction health and safety practices and culture  

Netherlands - Macroeconomic overview 

Netherlands - Economic indicators

Netherlands - Weather conditions

Netherlands - Political stability

Netherlands - Working hours and national holidays

Netherlands - Labour productivity  

Netherlands - Labour costs

Netherlands - Output 2021 and 2022(f) (in millions)

Netherlands - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Netherlands - Construction health and safety practices and culture

This section includes: 

Norway - Economic indicators

Norway - Weather conditions   

Norway - Political stability  

Norway - Labour productivity   

Norway - Labour costs  

Norway - Output 2021 and 2022(f)  

Norway - Long-lead equipment (LLE) – time risks  

Norway - Construction health and safety practices and culture 

Norway - Macroeconomic overview 

Norway - Economic indicators

Norway - Weather conditions

Norway - Political stability

Norway - Working hours and national holidays

Norway - Labour productivity  

Norway - Labour costs

Norway - Output 2021 and 2022(f) (in millions)

Norway - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Norway - Construction health and safety practices and culture

This section includes: 

Spain - Economic indicators  

Spain - Weather conditions  

Spain - Political stability  

Spain - Labour productivity    

Spain - Labour costs  

Spain - Output 2021 and 2022(f)  

Spain - Long-lead equipment (LLE) – time risks  

Spain - Construction health and safety practices and culture  

Spain - Macroeconomic overview 

Spain - Economic indicators

Spain - Weather conditions

Spain - Political stability

Spain - Working hours and national holidays

Spain - Labour productivity  

Spain - Labour costs

Spain - Output 2021 and 2022(f) (in millions)

Spain - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.

Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.

Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Spain - Construction health and safety practices and culture

This section includes: 

Sweden - Economic indicators  

Sweden - Weather conditions  

Sweden - Political stability  

Sweden - Labour productivity   

Sweden - Labour costs  

Sweden - Output 2021 and 2022(f)  

Sweden - Long-lead equipment (LLE) – time risks  

Sweden - Construction health and safety practices and culture  

Sweden - Macroeconomic overview 

Sweden - Economic indicators

Sweden - Weather conditions

Sweden - Political stability

Sweden - Working hours and national holidays

Sweden - Labour productivity  

Sweden - Labour costs

Sweden - Output 2021 and 2022(f) (in millions)

Sweden - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Sweden - Construction health and safety practices and culture

This section includes: 

Switzerland - Economic indicators  

Switzerland - Weather conditions  

Switzerland - Political stability  

Switzerland - Labour productivity   

Switzerland - Labour costs  

Switzerland - Output 2021 and 2022(f)  

Switzerland - Long-lead equipment (LLE) – time risks  

Switzerland - Construction health and safety practices and culture  

Switzerland - Macroeconomic overview 

Switzerland - Economic indicators

Switzerland - Weather conditions

Switzerland - Political stability

Switzerland - Working hours and national holidays

Switzerland - Labour productivity  

Switzerland - Labour costs

Switzerland - Output 2021 and 2022(f) (in millions)

Switzerland - Long-lead equipment (LLE) – time risks

Long-lead equipment (LLE) lead times have changed drastically since the start of 2022. Suppliers have seen the implications of material shortages, delays and price hikes throughout the supply chain, which is leading to extended lead times and reduced commitment from suppliers for new projects. The key areas in focus are:

1. Demand: The demand for long-lead equipment in the data centre sector has increased exponentially with the IT boom. More data centre and crypto mining providers are joining the market, and this new demand far outweighs the capacity of the supply chain. Entry onto the production line has become a significant challenge, with suppliers reporting fully booked capacity until Q1 2023. Opportunities exist for the development of Tier 2 and Tier 3 suppliers to Tier 1 status. However, it will take time to develop an extended supply chain.
2. Material shortage: The end of Q1 2022 saw a significant drop in the availability of raw materials used for LLE production. Global factors such as the Russia-Ukraine conflict and the resurgence of COVID-19 has halted production, which is at its lowest levels in recent years. The ethical approach in the supply chain to manoeuvre away from the use of Russian gas and oil has reduced production levels and added longer lead times within the supply chain. The raw material shortages are expected to continue into Q2 2022, whilst there is uncertainty for the security of the supply chain.
3. Freight durations and costs: Heightened by the increase in fuel costs and compounded by the shortage of labour and low supply of shipping containers, freight durations have soared as suppliers look for ways to mitigate these challenges. The demand for freight services has grown across all markets in recent years and the competition amongst industries has had a negative effect on availability and durations. As clients consider alternative solutions, it almost becomes cost prohibitive to use quicker forms of transport, such as air freight, due to increasing fuel costs.

Switzerland - Construction health and safety practices and culture