Rising building and construction prices
Rising raw materials prices
Increases of almost 40% for steel, 51% for aluminum and even 80% for certain types of wood… In Belgium, four out of five companies are affected by the wood shortage. Two-thirds are experiencing delays of two weeks, and one-third at least one month. From rising prices and longer lead times. The construction sector is struggling to keep up with strong post-covid demand. Behind this mess, the the delays accumulated by many of the world’s factories during the crisis.
In recent months, raw material prices have continued to climb, bringing with them a cascade of increases for all building materials. building materials. PVC, the paints or polyurethane foam are now more expensive, for insulation insulation work for example. “For some time now, even bricks and cement have been affected. In the end, almost all products are seeing medium to very substantial price rises”, sums up André De Groote, President of FEMA, the French Federation of Building Materials Traders. This is also having an impact on structural work.
And at the end finished products are suffering. “If the price of aluminum your window frames too. As for the rising cost of wood.., the price of pallets for transporting goods, and transport. Finally, I recently met an entrepreneur who uses small steel nails for fixing plasterboard. Boxes used to cost 300 euros, but now he has to pay 500 euros”, says Véronique Vanderbruggen, spokesperson for Confédération Construction. An example from the field that illustrates a very international problem, which comes from production plants here and there. In the wake of the arrival of the virus, many of them were indeed shut down or anticipated the urgent drop in demand. It took some time time, and are now struggling to catch up.
The virus also slowed down global shipping, with ships stuck in dock in every corner of the globe. Here again, the pump had to be primed, not to mention unexpected events such as the blockage of the busy Suez Canal last March. At the same time, demand exploded. All over the world, stimulus plans are mobilizing construction workers, as well as private individuals who – having tasted the joys of confinement – are investing in their homes in large numbers.
The example of wood
And then there are the specific problems that each material faces. Take wood, for example. The price of most types of wood rose sharply at the end of 2020. “This is essentially due to strong demand from the United States, where the construction sector increased production by 25% last autumn. And over there, people build a lot of wood. The other problem, again American, follows a decision by Donald Trump to tax Canadian wood. As a result, Americans have turned to the European market, accentuating the shortage here”, laments François De Meersman, General Secretary of Confédération Bois.
Prices for this material are still high, but are falling all the same even in July. “It seems that the situation has improved at United States in recent weeks. We could therefore return to a situation a little more normal, both in terms of price and availability”. And what about the rest? “For insulation, an 11% increase is already forecast for September. Steel should also remain high and even increase slightly until next year. So it varies product by product, and it’s very uncertain,” replies André De Groote (Source:Journal Le Soir : Cecile danjou 06 08 2021)
The situation in the wood sector is complicated. Raw material prices are skyrocketing and delivery times are getting longer. 80% of Belgian companies active in the wood sector are affected by a shortage. This situation is mainly due to one of Donald Trump’s last decisions when he was still President of the United States.
Prices have doubled at a timber merchant in Namur
We visit a wood distributor in Namur. Fir, oak, OSB, wood wool or multiplex: prices are going up all the time. We come across a customer who is taking advantage of the vacations to embellish his terrace. “We know it’s increased. We know that it’s more and more complicated, and there you have it, not all the dimensions are there, but we adapt and we make do with what there is. “says Pierre-Antoine.
Donald Trump’s decision + rising demand = shortage and high prices
One of the main explanations for this rise in prices can be found in the United States. A tax decided at the end of Donald Trump’s term in office hit
Canadian lumber. As a result, Americans are sourcing from Europe, in the midst of a sanitary crisis where demand was picking up strongly. ” Mainly the Scandinavian countries. They paid very high prices, so the market became very high. What’s more, demand also increased. All these factors doubled prices. “explains Stéphane Scaillet, manager of the wood store we visited. Take the case of disaster victims. Now that they have to rebuild, they don’t have much time to do so. choice than to pay the daily price.
This shortage comes at a very bad time for some individuals. The recent floods didn’t help matters. “I’m worried about the middle class, who will find it hard to afford such things. Take the case of disaster victims. They have to rebuild right now, and they’ll have to do it again. have little choice but to pay the daily price, and this daily price is very strong at the moment“says Stéphane Scaillet.
Visit In Belgium, four out of five companies are affected by this shortage. materials. Two-thirds are two weeks behind schedule, one-third are at least one month.
Source : RTL Mathieu Langer, Denis Caudronpublished on August 08, 2021 at 2:53 pm
Visit our service page to find out how Thomquin workshops can help you!
