Deteriorating profitability due to labor and equipment/material supply constraints and difficulty passing through costs in the construction industry

The risk that profitability in the construction business will deteriorate because shortages of skilled workers, tight supplies of equipment and materials, and rising material and labor costs are difficult to pass through to contract prices. For the construction industry, this covers how supply constraints and cost increases affecting labor, equipment and materials feed through to profitability via the difficulty of passing costs on to customers.