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A nationwide survey of 100 project managers focused on diverse asset classes found a vast majority are concerned about inflation, and worried deliveries, deadlines and budgets are at risk in 2023.
As the cost of business grows due to rate increases and inflation, the construction procurement process faces extra strain.
Commissioned by Northspyre, an operating system for managing real estate projects, the survey found more than half of project leads are concerned inflation will have a moderate to major impact on their roles, especially those working for larger firms. Nearly 68% felt the need to be more choosy and strategic around purchasing decisions, due to surging materials costs. The rising cost of labor was also considered a major challenge.
The coming downturn has focused many on the challenges of keeping projects on budget amid inflation, supply chain disruptions and rising interest rates. Other top worries include inflationary pressures, inadequate productivity and uncertain project outcomes.
Common problems faced when attempting to keep a project within budget included supply chain disruption, change orders, mistakes in construction, soaring building costs and inaccuracies in the original budget (research found project managers spend 38% of their day on manual data entry).
A lack of technological adoption and antiquated supply chains will only exacerbate existing economic tensions, the survey said.
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