According to the "ifo Institute - Leibniz Institute for Economic Research", the shortage of materials on construction sites has reached its highest level since 1991. In May, 56.6 percent of companies in the building construction sector complained of material shortages, while 44.8 percent of companies in the civil engineering sector reported shortages. The shortage of materials is due in particular to the war in Ukraine.
At present, companies are particularly short of construction steel and bitumen. Bricks are also difficult to obtain. The shortage of materials is leading to higher prices. Companies are passing these on to builders. The ifo Institute also found that rising construction prices and higher financing rates are making initial projects unprofitable. 13.4 percent of building constructors reported cancellations in May, up from 7.5 percent in April. In civil engineering, the figure was 8.8 percent (April: 9.3 percent). Nevertheless, the order books are full to bursting.
"With the Russian attack on Ukraine, supply problems for construction materials have drastically worsened. Material prices continue to rise as a result of shortages and higher energy costs. Due to rising construction costs and higher interest rates, there is now an increase in order cancellations, particularly in residential construction," says Felix Leiss of the ifo Institute.
Source: ifo.de
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