This week Cushman & Wakefield released a new article with data surrounding the challenges Life Sciences projects are facing.
A few key takeaways are below:
- Commercial projects experiencing increased costs, delays in materials and shortages in labor. These challenges are expected to continue, according to a recent Cushman & Wakefield survey of general contractors (GCs), who based their predictions on the past six months of operations: 98% indicated an increase in supplier costs and material lead times, and 75% indicated increased project execution timelines.
- General contractor sentiment from Cushman & Wakefield’s survey indicates that challenges will continue into the next six months, with 96% of GCs expecting future supplier costs to remain elevated and 73% anticipating project execution timelines to increase slightly to significantly. Although 12% of GCs don’t expect any change in material lead times, 88% expect lead times to increase slightly to significantly in the next six months.
- Despite challenges, development in the life sciences sector continues, with nearly 21 msf of projects under construction—more than double the pre-pandemic square footage. With this robust pipeline, which includes 32 msf of proposed projects in Boston and the San Francisco Bay area alone, competition for materials and labor will persist through the end of the year.
- Life sciences construction, which is particularly vulnerable to backlogs in materials, will continue to experience delays in the following supplies: AV and security systems: microchips, logic boards; HVAC equipment: AC units, air handlers, specialty equipment; Electrical: light fixtures, electrical switch gear (ATS, UPS, generators); Doors, frames and hardware: solid core wood doors, electrified hardware; and elevators.
You can read the article in its entirety here: https://www.cushmanwakefield.com/en/united-states/insights/us-articles/Challenges-for-Life-Sciences-Projects-Means-Early-Engagement-of-Project-Managers