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Construction boss Gareth Lewis warns of crippling price rises

Head of construction firm redeveloping London’s Battersea Power Station warns industry faces ‘unprecedented’ inflation

The head of construction at the firm redeveloping London’s Battersea Power Station has warned the industry is facing “unprecedented” inflation.

Gareth Lewis, construction chief executive of Mace Group, said despite having lived through three recessions, he had seen “nothing like” the sharp rise in costs that has hit the industry as it grapples with the fallout. pandemic and war in Ukraine.

“Steel prices have been terrible,” he told Building magazine. Since February, the price of steel has doubled.

Unprecedented: Mace Group’s Gareth Lewis said despite having lived through three recessions, he had not seen “anything like” the industry’s sharp rise in costs

The executive added that while the steel market could calm down in the coming weeks, he was less optimistic about when inflation would begin to ease.

“It will be with us for the next six to 12 months,” he said.

Lewis said the scale of the price hike meant many customers were being forced to reassess budgets or wait for the volatility to pass.

This means that medium-sized projects can be delayed by at least three months, while larger tasks are delayed by six months or more.

As a result, Lewis said, Mace is becoming “much more selective” about the projects it takes on.

Based in London, the company employs more than 5,800 people worldwide.

The firm’s previous major construction projects have included The Shard skyscraper and Tottenham Hotspur Stadium.

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Construction boss Gareth Lewis warns of crippling price rises

Source link Construction boss Gareth Lewis warns of crippling price rises

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