PotassiumAnd because of the bottleneck in the supply of raw materials, people have to wait longer and longer for craftsmen-and construction has become more and more expensive. Hans Peter Wollseifer, President of the Handicraft Industry, told the German News Agency: “Not only is wood scarce and more expensive, but there is a lot of everything needed to build or renovate houses. Our electronic technicians and cables The electronic parts and all of these are also lost. This makes our current operations in these areas very difficult.” Wolsefer warned that private housing construction will decline.
“At the same time, due to delivery bottlenecks, customers have to wait longer to find a craftsman, even if the situation naturally varies from case to case,” Wollseifer said. “Our company is now doing its best to ensure that this will not have any impact on customers, or only to a limited extent. In the overall transaction, the current average order range is 8.8 weeks.” The order range indicates that the order backlog will be How long does it last. “However, in the field of construction and expansion, you currently have to think about at least 10 weeks, and sometimes as long as 15 weeks, to start and process orders,” Wollseifer added.
Some materials are three times more expensive
The chairman of the German Central Handicrafts Association stated that the most important thing is that due to the scarcity of materials and skyrocketing prices, the construction and expansion sectors are facing the threat of a crisis. “We are still seeing serious bottlenecks in certain metals and plastics. The factories have reported to us that primary products such as screws are slowly becoming scarce.” The supply of important semiconductor products to the electrical industry will continue to have problems in the next few years. Months.
“Buildings will be more expensive,” Wollseifer said. He could not give an exact order of magnitude. “But in the past three to five months, the material prices of our various materials have increased by 20% to 30%-the material prices of individual commodities have tripled.”
More housing subsidies?
In terms of private housing construction, current developments may hinder economic recovery. “Due to rising prices, buildings have become so expensive that it affects the owners’ loans and the financing bottleneck is getting bigger and bigger.”
In addition, higher construction prices mean that subsidy programs for the purchase of residential properties and renovations account for only a small percentage of construction cost financing. “This is why politicians should urgently follow up this matter by increasing the amount of funds. Otherwise, the renovation power required by private residential buildings and climate policies will face the threat of collapse.”
Wollseifer said that in terms of existing contracts with private clients, price increases cannot be completely passed on to clients. “But for a new contract, if the company does not want to make a negative deal from the beginning, it must take this into account in the calculation. Since our company can only purchase materials at the same price as the price provided, the result is , The goods and services produced at that time will become more expensive for customers in the future.”
Unworthy work
Wollseifer described the current situation as absurd. “Our company has a complete order book, but given the current material purchase prices, it is not worth it to execute orders in many areas. Because these companies know they will lose money as a result.”
Production capacity is being rebuilt, but it will take time. “In the long run, you will solve this problem, but only in the long run. We have talks with the federal government and all new contracts should include price increase clauses in all new contracts so that the company is not liable for the increased costs. It can be passed on accordingly in the case of a public contract. We require that contract sanctions be reduced as much as possible in the event of delays because the products to be installed are not available, for example, crafts companies and municipalities are absorbed.
The German Chamber of Commerce and Industry has also identified the scarcity of raw materials as a major problem. “Due to the economic stimulus plans of the United States and China, the demand is huge, leading to a sharp increase in prices and a shortage of many raw materials,” said Peter Adrian, the president of DIHK.
