Materials price turbulence: what’s in it for investors?

21.06.2021

With a recent increase of price for construction materials, investment decisions will depend heavily on the supply chain, actual reserves and capacities of producers. In these circumstances, investors may choose different options of how to manage the situation. Like in 2008 and 2014, strategic thinking and looking beyond a short term become key drivers of success. 

The situation with a lack of materials and price increases is constantly coming throughout the year. It is therefore not a unique phenomenon, although now the prices of most materials are increasing en masse, and some of them significantly. Therefore, it is not possible to fully predict when the situation will stabilize.

Still, the price risk is generally better manageable then, what we consider as more fundamental, the lack of some materials and long delivery times. In such situations, investors face the need to make choices daily, set priorities, and react fast. Quick decision-making and their willingness to consider alternatives may make a difference.

Bilfinger Tebodin cost experts and professional project managers made a summary of 9 mitigation measure to manage the situation properly. Read the full article by clicking on the image below: