90 per cent of construction companies said costs increased in 2014, survey finds

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5th March 2015 16:12 - Construction

A recent survey by the Civil Engineering Contractors Association has found that nine in ten (90 per cent) construction companies have90 per cent of construction companies said costs increased in 2014, survey finds highlighted a growth in costs for 2014, despite them benefitting from fuel prices of record lows.

According to the survey, the amount of construction firms which identified cost increases rose by 27 per cent this year, as opposed to the previous year’s 63 per cent.

One in five (20 per cent) companies claimed to have experienced cost rises of over 5 per cent.

As construction firms’ workloads have become more manageable throughout the industry, the respondents identified the biggest pressure on costs to be rising wages.

For employees of the engineering sector, wage inflation rose from 0.7 per cent in 2013, to 3.3 per cent in 2014.

CEO of the Civil Engineering Contractors Association said of the survey: “It’s a little surprising (staffing costs) didn’t go up by more. That could be because we’re looking back at the last 12 months rather than where we are now.”

“What’s happening now is there are more significant rises in costs, particularly in certain roles where there are skills shortages. The challenge is keeping hold of people because there’s no guarantee you can replace them for the same price.”

The spike in staffing costs has come despite a decrease in price inflation in other industries. For example, fuel prices decreased significantly throughout the last 12 months, due to falling oil prices.

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