Materials Bottleneck in German Construction Eases Further
The shortage of materials on German construction sites has eased, according to surveys by the ifo Institute. In August, 42.2 percent of companies in building construction said they were suffering from material shortages, down from 48.8 percent in July. The situation in civil engineering also eased somewhat: 31.4 percent of companies reported problems from supply bottlenecks, down from 33.9 percent in the previous month.
“The July floods in Germany triggered new local upheavals, however. We received reports in August, particularly from North Rhine-Westphalia, that the events had exacerbated the shortage of materials. The proportion of affected companies there is now noticeably higher than the German average,” says ifo researcher Felix Leiss.
“Despite all the improvements, overall supply remains very tight. Many intermediate products remain scarce and expensive, especially insulation materials and steel. We’re seeing some relief in lumber, but many wood products are still hard to come by,” Leiss continues. “The bottleneck is driving prices upward, especially in building construction. Many companies there are reporting price increases, and almost half the companies in the sector are also planning further increases soon. While there are plans for price increases in civil engineering as well, they are much less widespread. The shortage of skilled workers is an additional concern for the construction industry. Currently, one in three companies is complaining of difficulties in finding suitable staff.”
