- BY Kevin Barry BSc(Hons) MRICS
- POSTED IN Latest News
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All input costs are rising as the Brexit/NI Protocol and the slow post COVID-19 scenario unfolding to the ‘new normal’
An example of the crossover has seen 12-15% increase in tender prices on particular projects, such is the near drastic change in the cost base of suppliers, trades and contractors attitude to risk in a more busy market generally. The fundamental premise of Supply & Demand has been changed dramatically. Labour rates have hardened and increasing.
Long term – Architectural design guides for public and private buildings shall require updating to adhere to social distancing requirements thus increasing the relative floor area required if other factors are to remain constant. Outdoor spaces and ventilation of enclosed spaces brings additional costs and lesser numbers of customers to pay for such costs, in the face of online business growth.
Short/medium term – All input costs, Labour, materials and plant are rise accordingly. Letters landing on the desk from various suppliers quoting 20% increases on certain product lines. Values shall not necessarily rise, and shall in many instances, fall, as the High Street is further abandoned for the Online Street !
Not to mention the political situation and recent developments, all aspects of business operations and investment are very fluid at present and fixed prices difficult to establish beyond 30 days.
More to follow !