WOOD PRODUCTS AND PANELS

www.euwid-wood-products.com · 28.04.2021

ISSUE 16/2021 OF 21.04.2021 PAGE 1

Construction industry deplores

shortages in material supply

Construction activity in Germany is currently experiencing restrictions due to shortages in supply of globally traded
materials such as wood, steel or crude oil products. According to the spring survey currently conducted by the German
Construction Confederation (ZDB) in Berlin, only 16% of the member companies report unproblematic wood product
availability. Increased demand in the USA and China is stated as the main reason for the very low supply. With regard
to steel and plastic, the proportions amount to 30% and 20% respectively. Two-thirds of the surveyed companies
consider procurement of mineral raw materials such as sand, gravel, concrete and cement to be unproblematic. In
addition to the shortage in supply of building materials, the ongoing lack of skilled labour is also creating problems for
many companies. Accordingly, numerous companies are unable to fully utilise their production capacities.

From the perspective of 75% of the surveyed companies, increasing competition in purchasing has led to significant
price increases; only 22% report slightly higher prices. It is anticipated that prices will continue to rise in coming months.
Against the background of the overall still high level of demand for construction work, 60% of the companies plan to
pass on the increased material prices to their customers. However, only around half of the companies have been able
to implement price increases in recent months.

Currently, 45% of the surveyed companies assess their business situation as good and 36% consider it to be
satisfactory. 19% of the companies describe their business situation as unsatisfactory. The generally positive overall
assessment is significantly influenced by companies active in housing construction and the extensions sector. More
than 70% of the housing construction companies and 60% of the companies active in the extensions sector assess
their business situation as good. Among the companies primarily active in the commercial building and public structural
engineering sectors, this proportion is below 30% in each case. The situation concerning orders in the public structural
engineering sector and in public road construction is assessed as good by only 21% of the companies. This also
correlates with the assessments of the companies regarding investment behaviour of the municipalities. Almost 57% of
the companies noticed slower investment behaviour than in the preceding year.

With regard to the coming months, business expectations are assessed as much more restrained across all building
sectors. Almost 20% expect construction activity to slow down; two-thirds expect stable development; and 14%
anticipate an improvement. Around 22% of the companies are planning to hire additional staff. The remaining
companies intend to keep it at the same level.

Licensed for Pablo Carrasco CMPC MADERAS S.A.

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