Rebuilding Confidence: CMS International Construction Study 2023

Introduction

In this era of low economic growth and high inflation, it is no surprise that the construction industry is facing a brutally challenging period. Rocketing interest rates, escalating material and labour costs, and growing pessimism, are heaping pressure on the sector. Across the construction supply chain, insolvencies have been rampant in many countries.

This unforgiving climate and gloomy outlook is delaying or deferring spending and investment, but it is also creating concern, tension and discord in existing construction projects. These difficulties must be worked through by project stakeholders to stave off full-scale disputes, yet dispute resolution proceedings, such as arbitration, frequently occur across the industry.

The bleak backdrop forms the foundation of the CMS International Construction Study 2023, which draws on extensive responses collected in late 2022 from industry experts and targeted interviews with selected senior professionals. The report outlines the difficult circumstances that the sector faces, but highlights the measures that can be taken to limit or prevent the fallout.