The construction sector is being hit hard by a shortage of certain materials and a significant rise in prices. (Photo: Matic Zorman/Maison Moderne)

The construction sector is being hit hard by a shortage of certain materials and a significant rise in prices. (Photo: Matic Zorman/Maison Moderne)

Luxembourg’s entrepreneurs believe that the worst is over in the construction materials crisis. On the ground, however, wholesalers are seeing prices still rising and, in some cases, persistent supply difficulties.

The construction sector has been hit by a shortage of materials and constantly rising prices for several months now. Can it hope to reverse the trend? “For the moment, unless the situation changes, we can say that the peak of the crisis has been reached,” says Pol Faber, secretary general of the “Groupement des entrepreneurs”, which represents companies in the sector. “The prices of certain raw materials such as plastic are slowly starting to fall, even if they remain very high.” Others, such as wood and iron, are stabilising, he says, without being able to give figures. And this has been the case for three to four weeks.

However, it is difficult to imagine a rapid return to pre-crisis prices: “they are extremely high, and it will take some time before they fall.” Michèle Detaille, president of industrial employer federation Fedil, admits that she cannot imagine a return to normal prices “before spring 2023.”

Wood and metals: 30 to 40% more since the beginning of the year

A lull felt by builders is unfortunately overshadowed by material suppliers. “The situation is a little better, we are managing to get supplies again. In June and July, it was very difficult to get supplies of wood, metal, PVC and insulation materials,” says Bob Wilwert, head of Wilwert Materials. But prices are still rising. This morning I received an email from a gutter producer who expects a 2-3% increase on 1 October. He estimates that metal and wood prices have risen by 30-40% since the beginning of the year and insulation materials by 20%. “I don't think it will get worse. I hope not,” he says.

“It's getting higher every week,” adds Andreas Freihoff, materials manager at Maroldt, a company specialising in tiles. "For the supply of plaster and silicone, it's a disaster. At Batipro, “things are going better in terms of supply,” says the structural engineering department. For Hoffmann-Neu matériaux, “prices are rising, but slowly.”

Lino Marques, head of the building technology department at Neuberg, is less optimistic: “Things are getting worse. It's not over yet. Even at the beginning of next year, I don't think we'll have a more positive view.” He cites the example of the Chinese port of Ningbo-Zhoushan, which was closed on 11 August because of positive cases of covid-19, and which is slowly resuming its activities, or Malaysia, which is under total lockdown. As a result, delivery times are sometimes “five times longe”. For steel, "we applied a price increase of 11% in July,” the wholesaler illustrates. “In October, they will rise again by 11.5%.”

Respite or not, this materials crisis seems far from over. Companies are organising themselves as best they can to get supplies, but prices are still rising. This will ultimately have an impact on the price for the consumer.

This article was originally published in French by . It has been translated and edited for Delano.