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