MNICH (dpa-AFX) – The lack of material in construction is worse than it has been for at least 31 years. In building construction, the proportion of companies that reported shortages in a survey by the Ifo Institute increased by 2.4 points to 56.6 percent, as the Munich economic researchers reported on Friday. This is the highest value since the survey began in 1991. In civil engineering, the share fell minimally to 44.8 percent – the second highest value ever determined here.
“With the Russian attack on Ukraine, the supply problems for building materials have drastically worsened,” said Ifo researcher Felix Leiss. “Structural steel, which was often imported from Russia or the Ukraine, is particularly scarce at the moment. There are also problems with bitumen. In some places, the companies also complained about a shortage of bricks. Insulating materials were already scarce in many places before the start of the war, but the situation further deteriorated.”
The shortage makes construction more expensive: “Material prices continue to rise as a result of scarcity and higher energy costs,” said Leiss. According to the Ifo, most of the companies in building construction reported that they had recently revised their prices upwards. In addition, further adjustments are often planned for the coming months. There were also increases in many places in civil engineering, although not quite as often as in building construction.
“Due to the rising construction costs and the higher interest rates, there are now more and more cancellations of orders, especially in residential construction,” said Leiss. In May, 13.4 percent of building contractors reported this, in April it was 7.5 percent and in March 4.6 percent. In civil engineering it was 8.8 percent, after 9.3 percent in April. Overall, according to the Ifo, the order books are still full./ruc/DP/nas