Advisory Brief: Inflation and Infrastructure Delivery — Drivers and Solutions
Advisory Briefs is a series from our management consultants that summarize and analyze key issues facing infrastructure owners and operators in delivering infrastructure projects, as well as potential solutions to mitigate these challenges. All Advisory, Policy and Funding Resources
Inflation Impacts on the Delivery of Infrastructure Projects
In June 2022, U.S. consumer inflation reached an annual rate of 9.1%. Following a long period of low inflation, owners and operators are challenged to deliver infrastructure on time and on budget. Inflation affects the prices of commodities and labor, and recent supply chain issues coupled with high demand can make materials hard to obtain.
This advisory brief discusses some of the drivers behind this higher inflationary environment and how infrastructure owners and operators can manage the challenges it presents.