FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
The latest Market Report from international property and construction consultancy, Gleeds, has revealed growing concern from the sector over the long-term implications of the Iran war. Global conflicts overtook interest rates and inflation as the primary threat to the industry this quarter, with around two-thirds of those questioned worried about commodity shortages and price hikes in the wake of the ongoing aggression.
Respondents warned of tightening supply chains, cost spikes and a deteriorating economic outlook, highlighting the damaging knock-on effects that the increase in oil prices will have, particularly for those engaged in plant and energy heavy trades.
Almost 50 per cent of respondents said they had turned down a tender opportunity in Q1, signalling a reluctance to take on risk in an increasingly uncertain environment. A further 57 per cent reported that contractors had become more risk‑averse, with many citing volatile input costs and concerns about a potential global downturn.
Commenting on the report, Andy Ellis, UK MD at Gleeds, said: “The conflict in Iran is already affecting construction costs and confidence, with the sector particularly vulnerable if prices continue to rise and we experience a slump in demand. Contractors are stepping back from risk, clients are seeing reduced appetite to tender, and the market is becoming more cautious. We expect to see greater use of fluctuation clauses and more defensive commercial strategies as volatility persists.”
The report also highlighted frustration with a lack of clear government direction, with 60 per cent of respondents saying the Chancellor’s spring statement failed to provide cause for optimism. When asked what would help stimulate hiring, 22 per cent pointed to reversing the rise in Employers’ National Insurance Contributions, while others called for increased investment in skills (21 per cent) and better promotion of construction careers (34 per cent).
FMJ and Watco Webinar: Meeting compliance in a new culture of accountability
From January 2026, the Building Safety Regulator (BSR) formally separated from the Health and Safety Executive (HSE). Created under the Building Safety Act 2022 in response to the Grenfell Tower tragedy, the BSR is designed to raise safety standards across the built environment and introduce a stronger culture of accountability, transparency, and proactive risk management.
This shift places facilities managers in a more strategic safety assurance role – far beyond routine maintenance.
FMJ and Watco are hosting a webinar on 22 April at 11:00am to explore what this new regulatory landscape means for FMs. To register for the webinar click here.
Can’t make it no problem…
Simply register above and after the webinar has been broadcast, we will send you a link to watch the recording.
