“While the sector still faces some transient productivity issues and safety time-outs from increased workplace accidents in 3Q2022, we believe these issues should gradually be alleviated in the coming quarters,” write Ong and Tan.
CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan have kept an “overweight” rating on the building materials sector in Singapore, as the labour situation within the sector shows improvement.
Employment in the construction sector rose 14% y-o-y in 2Q2022, forming approximately 99% of end-Dec 2019 levels when border controls were significantly relaxed in April. In addition, average weekly paid overtime hours worked by construction employees in 2Q2022 rose 7% y-o-y, supporting the analysts’ belief that contractors are accelerating project execution to make up for lost time.
