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 did so. The shortage of materials can be attributed in particular to the war in Ukraine.
Companies are currently lacking construction steel and bitumen in particular. Bricks are also hard to come by. The shortage of materials is leading to higher prices. The companies are passing these on to the builders. The ifo Institute has also found that rising construction prices and higher financing interest rates are making the first projects unprofitable. In May, 13.4 percent of building constructors reported cancellations (April: 7.5 percent). In civil engineering, the figure was 8.8 percent (April: 9.3 percent). Nevertheless, the order books are full to bursting.
"The Russian attack on Ukraine has drastically exacerbated the supply problems for building materials. Material prices are continuing to rise as a result of the shortage and higher energy costs. Due to rising construction costs and higher interest rates, orders are now increasingly being canceled, especially in residential construction," says Felix Leiss from the ifo Institute.
Source: ifo.de
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