On September 16, Ken Roberts was quoted in Construction Dive on the impact of rising interest rates and continued inflation on the construction industry.
According to the article, the Federal Reserve raised its benchmark interest rate by 25 basis points, its first increase since 2023. While the rate hike could increase borrowing costs and affect the viability of some construction projects, elevated material and labor costs continue to put additional pressure on planned projects.
Commenting on the outlook for construction costs, Roberts said he does not expect the inflationary pressures facing the industry to ease in the near term.
"I don't see any data that suggests that in the next six months, the inflation that the construction industry has experienced in the last year is going to decrease. In fact, I think everybody is stating the opposite. That is, they think that we're going into even a more inflationary time period."
Read the article here.