Building materials prices have continued to rise in recent weeks, owing primarily to the conflict in Ukraine. This trend is expected to continue in the following months, according to the Construction Confederation.
According to a poll of 210 construction companies conducted by the industry group on Thursday, construction material prices have climbed by up to 12% since the beginning of January. As a result, the federation recommends builders and installers to employ price review clauses or daily prices more than ever.
Steel, wood, insulation materials, and non-ferrous metals have the biggest rises, while glass products, infrastructure materials, bricks, and roof tiles have the fewest. According to a press release from the Construction Confederation, 95 percent of contractors foresee further hikes in the coming months as a result of the Ukraine conflict, particularly for steel items.
In half of the cases, the increased building material prices are paid by the construction company, putting a strain on profitability. The other half of the time, the increases are passed on to the client, but just partially (29%) rather than completely (18 percent).
Furthermore, 72 percent of the organizations polled report a decrease in delivery times. Installation materials such as bricks and tiles, as well as steel goods, experience the worst delays. Again, a huge majority of entrepreneurs (83 percent) believe the situation would worsen as a result of the Ukraine conflict, particularly in the steel industry.
Finally, the Belgian Construction Confederation reports that at the end of last year, just under 2,500 seconded Ukrainian workers were working in the Belgian construction industry. Some Ukrainian posted workers have returned, according to 11% of contractors and installers who work with them. “A mass evacuation is thus ruled out for the time being, but we fully appreciate Ukrainians’ desire to defend their homeland.” On the other hand, 40% of construction firms are eager to hire Ukrainian migrants, even if just for a limited time.”