Germany – Ifo: Supply of materials on German construction sites has reached its highest level since 1991

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The shortage of materials on German construction sites has reached its highest level since 1991. This is according to research by the Ifo Institute.

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“With the Russian invasion of Ukraine, the problems with the supply of building 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 are now more order cancellations. in residential construction, “says Ifo researcher Felix Leiss.

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In building construction, the percentage of companies that reported deficiencies rose to 56.6% in May, from 54.2% the previous month. In the field of civil engineering, 44.8% were identified. Of these companies, 91.1% again reported that the war in Ukraine exacerbated material shortages.

“Currently there is a particular shortage of structural steel, which is often imported from Russia or Ukraine. There are also problems with asphalt. In some places, companies have also complained about a lack of bricks. Insulation materials were already in short supply in many places. “before the start of the war, but here too the situation worsened further,” says Ifo researcher Felix Leiss.

Lack of materials and high energy costs raise prices. Construction companies pass on increases to manufacturers: in construction, a large number of companies reported that they recently revised prices upwards. All too often, further adjustments were planned for the coming months. Civil engineering has also increased in many places, though not as often as building construction. The combination of rising construction prices and higher financing rates now makes the first projects unprofitable: In May, 13.4% of building builders reported cancellations, up from 7.5% in April and 4.6% in March. In the civil engineering sector it was 8.8%, after 9.3% in April. Overall, though, the order books are still full.

Source: Capital

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