Lessons from Greatearth's bust: Integrated players best placed to tackle construction woes
THE plight of defunct contractor Greatearth underscores the severity of the headwinds that have been plaguing the construction sector.
Since the pandemic first broke, construction companies have seen work disrupted by the circuit breaker as well as stringent safe-distancing measures at worksites. Arguably the biggest challenge, however, is tighter border controls which have restricted the flow of foreign workers and resulted in a manpower shortage.
Companies have had to hike salaries to retain their existing workers, who also have to be tested regularly for Covid-19. All this has driven up costs and put pressure on margins. Supply chains have also been disrupted, which has impacted the supply and cost of construction materials. In short, it's created the perfect storm for the construction industry.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
OpenAI is readying a search product to rival Google, Perplexity
UOB Q1 profit down 1.6% to S$1.5 billion
Google updates US$499 low-end Pixel phone, cuts tablet price
Meta will let advertisers create campaigns using new generative AI tools
Match posts sixth straight decline in Tinder users; shares fall
Reddit gains after strong sales in first report since IPO