Material Shortages Ease in German Construction
Material shortages on German construction sites eased slightly toward the end of the year. In December, 31.3 percent of companies in building construction experienced supply problems, down from the previous month’s 34.5 percent, finds an ifo Institute survey. In civil engineering, 23.1 percent of companies were affected, down from 28.7 percent in November. “Despite recent improvements, the situation remains tight. Compared to their long-term trend, these values are still exceptionally high,” says ifo researcher Felix Leiss.
While there were signs of some easing in the case of wood and steel, bottlenecks were still reported in both cases. Supply problems continued for insulation materials and (other) plastic products. “Significant increases in material prices heaped additional pressure on construction companies. Especially in building construction, companies plan to pass on these costs to developers in the coming months. But in civil engineering, too, price adjustments are being pursued in many places,” Leiss says.
