Global Construction Costs Surge by Nearly $2 Trillion Amid Uncertainty: A Currie & Brown Study

Global Construction Costs Surge Amid Uncertainty

A recent study by Currie & Brown sheds light on a pressing issue facing the global construction industry. The annual Construction Certainty Index reveals that uncertainty has led to an average increase of 12.4% in project pipeline costs worldwide, translating to nearly $2 trillion in additional construction expenses for 2026 alone. This alarming trend is largely attributed to factors such as inflation, fluctuating energy prices, and supply chain disruptions.

The Findings from Currie & Brown

Conducted among more than 1,300 decision-makers in construction and infrastructure sectors across North and South America, Europe, and the Asia-Pacific region, the report indicates a decline in confidence among companies. Only 46% of respondents feel confident about meeting deadlines, a stark drop from previous years. Additionally, a mere 40% are assured that they can stick to their budgets, marking a decrease of 12 to 14 percentage points year-over-year.

The survey highlights that 70% of the participants reported significant impacts from inflation on material costs, while 64% indicated that energy price fluctuations have affected project execution. Furthermore, 59% of respondents noted that disruptions in supply chains were another critical factor impacting construction timelines and costs.

The Consequences of Rising Costs

These issues have visible consequences on project execution as 30% of all surveyed projects faced delays last year. Moreover, 27% of projects experienced scope reductions, while over 31% of potential projects have not progressed beyond the planning phase due to uncertainties.

Dr. Alan Manuel, Chair of Currie & Brown, emphasized the need for companies to cultivate resilience in the face of ongoing challenges. He stated, “Businesses cannot afford to stagger from one crisis to the next or simply wait for calmer periods. Those who thrive amid uncertainty typically share key traits. They invest in their workforce, leverage technology and data, and build the judgment and skills required to identify and manage risks effectively.”