Why construction prices are surging
Labour productivity in the construction sector is growing at a much slower rate than in other sectors such as manufacturing. As a result, higher wages and increasingly expensive materials cannot be absorbed and prices are rising fast, according to a recent study by ING.
Findings in a nutshell
- Slower growth in labour productivity in construction sector
- Big price increases in construction sector
- Overcapacity and reduction in investment
- Need for flexibility makes innovation difficult.
Read more about this ING study on Think