Shortage of Materials Worsens in German Construction
German construction companies are facing increasing difficulties from shortages of materials and rising purchase prices, according to surveys by the ifo Institute. “There are all sorts of problems, and they have worsened again compared to the previous month,” says Felix Leiss, an ifo Institute survey expert. In June, 95.2 percent of respondents reported that purchase prices had risen in the previous three months.
In building construction, 50.4 percent of companies also reported disruptions due to delivery delays. The figure was 43.9 percent in May and 23.9 percent in April. In civil engineering, 40.5 percent of respondents reported procurement problems in June. This represents a noticeable increase over the previous month, when the figure was 33.5 percent. As recently as March, there were hardly any supply problems, with only 2.9 percent of companies complaining about them.
“The supply of lumber is still a major issue on German construction sites. But petroleum-based building materials are also in short supply. In many places, there are shortages of synthetic insulation materials, drainage pipes, and other plastic parts. On top of that, there are delivery problems and price increases for steel,” Leiss says.
