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.