Canadian Manufacturing

On-Site: The construction credit crunch: A perfect storm

by David Bowcott   

Heavy Machinery Infrastructure capital construction finance

Availability of capital, credit and cashflow is dropping at a shocking pace.

The construction sector, for the most part, has very thin margins, especially when viewed in the context of the risks taken via contract over the past decade. Of concern is the rapid rise in risk over the past three years as events such as the COVID-19 pandemic and geopolitical instability created by war in eastern Europe have added uncertainty into the marketplace.

Construction stakeholders need to be laser focused in the coming five to 10 years as the impacts of these risk-fuelling events continue to manifest within the global construction economy. The construction sector has already begun a journey down the road of a massive credit crunch and the availability of capital, credit and cashflow is beginning to drop at a shocking pace.

As forward-minded companies, there are some solutions that warrant consideration to help mitigate credit crunch impacts.

This article originally featured in On-Site Magazine Read the full version here. 


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