03 August 2022
Linesight has released its latest commodity reports, covering the trends and outlook for construction materials pricing and supply for 24 countries around the world, including Australia, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, India, Ireland, Israel, Italy, Japan, the Netherlands, Norway, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, the UAE, the UK and the US. These reports are comprised of data collected from an extensive programme of both primary and secondary research.
To read the press releases for some of our country-specific reports, please click the country in question below:
The reports can be accessed in the 'Latest Insight Articles' section of our 'Insights' page , or you can download the global report here.
SINGAPORE, 4 AUGUST 2022 – Linesight, a global construction consultancy firm, has released new data showing relative increases in commodity prices for the second quarter of 2022, but indicating signs of easing for the remainder of the year. Material prices in the construction industry are expected to continue to be affected as a result of geopolitical instability, although any price increases for the remainder of 2022 are predicted to be modest. A tight labor market also continues to impact Singapore’s build costs in 2022, but modular construction has received more governmental support to bring more efficiencies to the sector and alleviate the resourcing strain on construction firms. The findings are part of Linesight’s Q2 2022 Singapore Commodity Report.
Prices for key materials in Singapore’s construction industry, such as steel and concrete, are projected to stabilize for the remainder of this year, having soared in the first quarter amid supply disruptions stemming from the Russia-Ukraine conflict, coupled with high energy and shipping costs. Steel rebar and flat steel prices are projected to increase by 1.5% from Q2 to Q3 2022, while concrete prices are expected to see a +1.1% change between these quarters.
With COVID-19 lockdowns in China constraining demand, copper prices have since fallen back after an upward trend earlier this year. Linesight expects copper prices to continue to fluctuate, with a -13% change anticipated from Q2 to Q3 2022, although investments in the electric vehicle (EV) and renewable energy sectors will strengthen underlying demand in the longer term.
Michael Murphy, Director at Linesight Singapore, said:
“Whilst a stabilizing of material prices is good news for the construction industry, elevated prices continue to create challenges and drive the industry to look for innovative solutions. Looking ahead, we are anticipating that a levelling of supply costs, combined with increased interest in alternative construction methodologies such as modular construction, is likely to contribute to a very active construction industry for the second half of 2022, and into 2023.”
Overall, further growth is expected in Singapore’s construction industry in 2022, but at a more moderate rate than 2021, of 5.7%. Meanwhile, although Singapore’s economy posted a 4.8% year-on-year growth in Q2, momentum is expected to slow through the remainder of the year in line with the current global climate. Against this backdrop, Linesight is advising its clients to adopt a more strategic approach to procurement over the coming months, in order to mitigate risks associated with the continued supply chain challenges, inflated commodity prices, and transport and logistics difficulties.
You can access the full report here .
Linesight is a multinational consultancy firm with over 48 years' experience, providing cost, schedule, programme and project management services to a multitude of sectors including Life Sciences, Commercial, Data Centers, High-Tech Industrial, Residential, Hospitality, Healthcare and Retail. Linesight’s specialist project teams, each with specific skills and experience, provide faster project delivery, greater cost efficiency and maximum value for money for their clients. For further information, please visit https://www.linesight.com/.
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LONDON, AUGUST 4, 2022 - Global construction consultancy firm, Linesight, today released new data forecasting stability to return to construction materials costs after pandemic-driven volatility, but rising global energy prices, higher interest rates and supply chain disruption are contributing to uncertainty about the cost of major building projects. Linesight’s forecast includes a reduction in steel prices, with flat steel to drop 3.9% and rebar by 3.5% between Q2 and Q3 this year. Copper prices are forecast to further reduce by 17% between Q2 and Q3 2022.
The news comes as consumer price inflation in the UK hit a 40-year high as of May at 9.1% (up from April's 9%) - the highest rate of the G7, while construction output continued to grow, with seven consecutive months of growth and is over 4% above the pre-pandemic figure.
Michael Riordan Managing Director, Linesight United Kingdom, said:
“Despite this growth and the stabilisation of commodity prices, we are seeing uncertainty in the market. The government’s long-term investment strategy is unclear while increasing interest rates, supply-chain and logistics disruption and labour shortages are making it challenging for clients to plan for large CAPEX projects. Construction projects will need an advanced approach to planning and procurement to ensure programme times and cost are managed successfully. In the current climate we are recommending that our clients take a strategic procurement management approach and adopt open risk-sharing with contractors. They should combine relationship-based supply chain management, quantitative risk analysis and an elevated level of value engineering to help reduce risks and provide better predictability of outcome.”
Among the key findings of the report:
Despite the uncertain environment created by the ‘perfect storm’ of challenging market conditions, the UK construction sector continues to grow. However, the sector will require clear guidance on government investment plans and potentially government assistance in order to deliver the construction output required to meet current demand.
The report can be read in full here
Linesight is a multinational consultancy firm with over 48 years' experience, providing cost, schedule, programme and project management services to a multitude of sectors including Life Sciences, Commercial, Data Centers, High-Tech Industrial, Residential, Hospitality, Healthcare and Retail. Linesight’s specialist project teams, each with specific skills and experience, provide faster project delivery, greater cost efficiency and maximum value for money for their clients. For further information, please visit http://www.linesight.com
Roxane McMeeken – Director, ING Media
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