MADRID (ICIS)--The persistent shortage of materials in Germany’s petrochemicals-intensive construction industry has worsened considerably since the war in Ukraine started, research institute Ifo said on Friday.
During March, more than 37% of companies in the building construction sector – business and residential spaces – reported disruptions in their supply chains, up sharply from February’s 23.5%.
In civil engineering – mostly public infrastructure works – 31.5% of companies reported trouble sourcing materials in March, up from 17.5% in February.
The shortages will prompt companies to increase their selling prices, said Ifo, which would add to the already-high inflationary environment.
Overall inflation in Germany stood at 7.6% in March as energy prices shot up more than 40% during the month.
“Russia’s attack on Ukraine has created a high level of uncertainty with regard to supply chains,” said Klaus Wohlrabe, head of surveys at Ifo.
“Material prices for many commodities are fluctuating much more as a result of the war. In addition, many companies source intermediate products from Russia or Ukraine. This makes construction planning more difficult.”
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The building and construction market is a key consumer of chemicals, driving demand for a wide variety of chemicals, resins and derivative products.
Several petrochemical sectors have the construction industry as a key end market, producing materials like plastic pipes, insulation foams, paints and coatings, adhesives and synthetic fibres, among others.
Front page picture: A building site in
Germany
Source: Ifo