the construction industry is running out of materials...


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The disruption of supply chains and the high demand in the USA and China, especially for wood, are causing real supply problems in the construction industry here in Germany. In addition to wood, the shortage of goods now affects all plastics and thus also packaging and all insulation materials that are needed. After many discussions with the industry, there is no relief in sight. The consequences of the Corona pandemic are increasingly being felt in the construction industry as well. While capacities were initially reduced or shut down in many areas internationally as a result of the infection and thus stocks along the supply chain were run down, the partial economic recovery ensured a rapid increase in demand for building materials. This high demand is encountering a poorly filled supply chain, and this applies to almost all sectors and raw material industries. The consequence: increasing delivery times. Ordering behaviour changed massively, further fuelling the bottleneck situation. Furthermore, unforeseen events beyond the Con Car Corona pandemic caused additional difficulties. For example, a large-scale winter storm in Texas caused a widespread outage in the petrochemical feedstock industry with consequences for exports to Europe. A fire at BASF at the beginning of March led to an interruption in monomer production. This affects the production of dispersion, which is an important raw material for liquid and paste products. Lots of cargo and little capacity. Shipping on the world's oceans can hardly cope with the enormously increasing freight volume. Container transports from Asia to Europe are massively affected. Containers are in short supply and sea freight is exploding. The loading and unloading times in the ports and thus the transport times are increasing significantly. Added to this is the shipping accident in the Suez Canal. This caused weeks of delays in container traffic, which led to traffic jams in the ports of destination. Prices are rising sharply. Wherever high demand meets low supply, prices climb. What is new are the dimensions of these price increases for the entire building materials industry. This affects almost all relevant sectors. In general, double-digit price increases are to be accepted in purchasing. This situation puts a heavy burden on all parties involved with noticeable consequences. The purchase prices for raw materials and also the costs for material procurement are rising enormously. Building material suppliers and building contractors have had to accept price increases from almost all suppliers and pass them on to their customers. Consequently, building will become even more expensive.




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