Construction industry: shortages in material supply

23.04.2021 − 

Construction activity in Germany is currently experiencing restrictions due to shortages in supply of globally traded materials such as wood, steel or crude oil products. According to the spring survey currently conducted by the German Construction Confederation (ZDB) only 16% of the member companies report unproblematic wood product availability. Increased demand in the USA and China is stated as the main reason for the very low supply. With regard to steel and plastic, the proportions amount to 30% and 20% respectively. Two-thirds of the surveyed companies consider procurement of mineral raw materials such as sand, gravel, concrete and cement to be unproblematic. In addition to the shortage in supply of building materials, the ongoing lack of skilled labour is also creating problems for many companies. Accordingly, numerous companies are unable to fully utilise their production capacities.

From the perspective of 75% of the surveyed companies, increasing competition in purchasing has led to significant price increases; only 22% report slightly higher prices. It is anticipated that prices will continue to rise in coming months. Against the background of the overall still high level of demand for construction work, 60% of the companies plan to pass on the increased material prices to their customers. However, only around half of the companies have been able to implement price increases in recent months.

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