FIEC warns material shortages could halt growth
By Dan Colombini04 October 2021
The European Construction Industry Federation (FIEC) has warned that the materials shortage could continue to hinder growth in the industry, despite recent claims to the contrary.
As previously reported by Construction Europe, Dutch financial services specialist ING stressed last week that Europe is set for for ‘modest growth’, in spite of the current materials and labour shortages.
However, FIEC director general EU, Domenico Campogrande, has warned that these outcomes must “be seen in a different framework”, despite recent initiatives to overturn the problem.
Since the second half of 2020, construction companies have experienced significant shortages of materials and increases in the prices for products.
Campogrande stressed that this has led to excessive delivery times, leading to higher bills for clients and major delays to projects.
And the situation will remain unsustainable for companies, as well as for clients, if there is not a return to a “normal” situation in the short or medium term, according to Campogrande.
“Material and labour shortages are at an all-time high and combined with the significant increases in prices they constitute a heavy sword of Damocles over the sector and the overall recovery,” he said.
“The EU needs a construction sector that can function smoothly for ensuring a sustainable recovery, be it renovating the existing building stock, constructing facilities for renewable energy or coastal defences, maintaining or erecting greener transport infrastructure, etc.
“We should not forget that construction is one of the main driving forces for the transition to a carbon neutral continent.”