Published by Construction Enquirer
ARCADIS SOUNDS ALARM OVER COMPUTER CHIP SHORTAGES
Consultant Arcadis is warning contractors about a growing crisis over the supply of computer chips.
Agnieszka Krzyzaniak, Global Research Manager at Arcadis, said: “Make no mistake, the current semiconductors shortage is already showing signs of impact on the construction sector.
“Chips are present in virtually every electronic component we use and an essential part of building controls and safety systems.
“There is little prospect of supply chains stabilising in the immediate future, and now is the time for clients to encourage close and early engagement of their subcontractors with the manufacturing and distribution supply chains.
“Secure your spot in the waiting line as quickly as possible. Just around the corner, there are thousands of wind turbines and solar panels needed for energy transition, waiting to get their share of the chips supply.”
The warning came as Arcadis upgraded its inflation forecast for 2022.
Inflationary pressures on buildings are expected to peak at 5% in London (5% regionally), with increases of 6% in infrastructure.
Material price inflation should be less of a problem in 2022 but Arcadis anticipates that labour cost pressure will emerge in its place.
A tighter supply of skills at all levels in the industry means that short and mid-term inflationary pressures will continue to grow.
But labour performance seems to continue improving with construction productivity data up by 12% in real terms compared to pre-Covid levels.
Simon Rawlinson, Head of Strategic Research at Arcadis, added: “The UK’s recovering economy is not short of challenges.
“Mounting inflationary pressures and the unpredictable consequences of war in Ukraine demand an immediate response.
“Construction’s skill shortage is a long-term problem, and with new sources of demand such as energy transition, there is no obvious source of additional labour.
“Crucially, while construction works hard at making its opportunities as attractive as possible, the industry must also make sure it makes best use of the skills that it already has.”