As a follow-up or outcome of the CIRT-FMI Webinar series, a whitepaper entitled “The Construction Spending Paradox: Is it Growth or Inflation?” has been developed to provide background, data, and concepts to CIRT members regarding how to remain competitive as production costs rise.  The report points out, that in February 2022 consumer prices climbed 7.9% year over year— at the same time, the 12-month producer price index was up 10%. The impact in part “has left contractors juggling steeply rising input costs, stalling advances in bid prices, and taking larger shares of project risk.”  Near term, there are sober concerns that: “Companies may experience a drop in profits despite strong backlogs and prospects for growth as energy and labor costs continue to rise.”  To counter this, firm estimators will need to master the “tricky job negotiating price fluctuations, supply chain issues, margin protection, labor costs and relationships with subcontractors.”

The paper is intended to “arm” CIRT members with reliable, clear, and persuasive evidence of the rapidly changing market conditions to discuss with clients, subs, public, etc. regarding project opportunities and costs.