Q2 2020

Inflationary and Deflationary Pressures

Based on our observations of the market and our extensive discussions with the supply chain we have established that there are a number of inflationary and deflationary pressures that are likely to impact input costs and tender pricing. Currently one of the most significant inflationary pressures is the reduced levels of productivity on-site due to the latest site operating procedures (SOP) and social distancing guidelines. However, as noted in our table below, there are a number of deflationary pressures counteracting this – not the least of which is lower demand and confidence.