How Will Construction Face Its Third Margin Squeeze In a Decade?
AI Article Summary
For the third time in a decade, the construction industry is experiencing a margin squeeze as material price increases outpace bid prices. This situation is worsened by persistent wage growth and a tight labor market, even during the typically slow winter season. The unemployment rate remains low, contributing to the increased labor costs.
What This Means for Canadian Contractors
For Canadian builders, the current margin squeeze means a need for more accurate cost estimation and tighter project management to remain profitable. This challenge highlights the importance of monitoring supply chain volatility and considering alternative sourcing methods. Canadian contractors might also need to seek innovative solutions to manage labor costs more effectively and maintain competitive bids.
