Shortage of Building Materials Eases in Germany
German construction businesses are experiencing supply bottlenecks less often, according to surveys by the ifo Institute. In building construction, 25.3 percent of participants reported disruptions, down from 31.3 percent in December. The situation in civil engineering also eased somewhat, with 20.4 percent of businesses reporting problems from supply bottlenecks. In the previous month, the figure was 23.1 percent. There was also less talk of a shortage of skilled workers. Nonetheless, in many places vacancies couldn’t be filled promptly. “Order books are full to bursting, but one in three construction businesses can’t find enough skilled workers,” says ifo researcher Felix Leiss.
“However, materials are still a cost driver in construction. We’re seeing this in building materials wholesaling, too: rising sales prices were reported across the board in January. In building construction in particular, businesses had to raise prices in response to rising material costs, and in many cases were planning further adjustments for the coming months,” Leiss adds.
Building construction and civil engineering both show signs that
the shortage of skilled labor is becoming slightly less acute: in civil engineering, 34.4 percent of businesses reported a lack of suitable applicants; this is somewhat less than in December (37.1 percent). In building construction, 31.8 percent of businesses are currently affected, a month-over-month decrease of 5.6 percentage points. Within a year, however, the figure has risen by 15.5 percentage points.
