It is clear that the market is still settling after a year of lockdown and focused spending in certain sectors which has created pockets of pressure on top of logistical issues. As economies open up demand should become less focused on the repair and maintenance market (as has been seen in the US), and evidence suggests that businesses will look to resume investment activity. This general recovery should help demand become less volatile.
However, the construction industry continues to show some characteristics that we should be mindful of as the economy recovers and commercial workload returns. Several contractors have looked to the infrastructure sector to fill order books, which could create capacity constraints when paused projects return to the market. Company profit levels should also be closely watched in the coming period, particularly as we continue to see price pressures.