The latest industrial market update report from Kam Project Consultants contains a number of observations to give heart to those in the industrial and logistics development sector.

Following a year where the industry has had to deal with labour shortages, escalating energy costs and persistent inflation it is good to see that there are signs that the market began to stabilise in 2022 and has continued to do so in 2023.

• Rapidly increasing material costs are starting to tail off, with the cost of some materials, such as steel, beginning to fall.
• Lead in times for key materials, such as cladding and steel, are now shortening.
• Contractors, sub-contractors and suppliers are now willing to hold their tender prices for longer periods.
• Tender pricing for 2023 is expected to become more competitive.

While the above is clearly welcome news, some troubles persist, such as labour costs continuing to increase and demand from occupiers falling from previous years, albeit remaining robust.