Two big events hit construction this quarter: Brexit—that is, the British vote to leave the European Union— and the U.S government’s decision to increase tariff duties on Chinese cold-rolled flat steel by 522%. However, neither will have much of an impact on domestic construction costs, according to ENR’s sources.
Julian Anderson, president of Rider Levett Bucknall’s (RLB) North American operations, has spent the past week in London talking with politicians, contractors, owners and economists about the potential effects of Brexit. Their initial conclusion is that the U.K. should brace for a recession that could spread to Europe. “Some large building projects are already being recalled for reconsideration,” he says.