Construction materials shortage and price rises in Spain

In a fresh blow for constructions companies large or small the price of building materials increased by 7.8% in March, compared to one year prior, according to the Monthly Statistics of Building Materials and Components. report for April.

Any new construction or rehabs are affected by price increases. The cost of materials for repair and maintenance work rose 1.5% between February and March, and increased by 9% between March 2020 and March 2021.

Building merchants are warning that lead times have lengthened, and demand is such that it is proving difficult for manufacturers and suppliers to build up stock levels.

 

If you're in the midst of  building or renovating your house, or undertaking a home improvement project, read on to help plan ahead for your project, and learn which materials are facing price rises or shortages in 2021.

 

Why is There a Construction Materials Shortage?

The construction materials shortage can in part be traced back to increased building and home improvement activity in 2020, particularly during the first lockdown. This led to a slowdown in the production of materials from some factories in the EU, and supply chains have remained stretched ever since.

Many people have taken to DIY and home improvement projects during the past year and thus have caused an importan demand on building materials,

 

Raw materials are the most affected.

There is currently a global shortage of raw material shortages, stemming from global demand and other external factors including the slowdown and in some instances, factory closures, which continues to constrain production of certain products, such as insulation, paints and adhesives, as well as packaging for products.

 

Import of raw materials in Spain.

Roughly 60% of imported materials used in Spain construction projects comes from the EU,  and increased congestion has been reported at Spain ports since the turn of the year, leading to delays.

 

Construction Sector is growing.

The good news is that the latest figures showed April was another strong month for the Spain construction sector, following on from March where growth expanded at the fastest pace in more than six years. 

Moreover, overall sales of building materials have rebounded back to pre-Covid levels, according to this month’s data also highlighted record high material prices, with costs rising at the fastest pace since the survey began in 1997.

 

Which Materials are Short in Supply?

Timber.

There has been a nationwide shortage of timber since the first lockdown, and imports will be an issue for the foreseeable future, with MDF, veneers and solid wood reported by contractors to be particularly affected. 

 

There is unlikely to be any improvement in timber supplies this year with little or no timber currently coming into Spain that is not already pre-sold and global demand outstripping supply.

Volumes are likely to be available but on much longer lead times, with some contractors reporting between 2-6 months.  

 

Roof tiles

Roof tiles were the most common material shortage reported by roofing contractors in the final quarter of 2020, and they continue to be short in supply. 

Builders reported earlier this year that roof tiles from suppliers  were showing lead times of up to 6-8 weeks.

 

Insulation

There has been restricted availability of insulation for several months, particularly PIR insulation and wool fibre insulation.

 

Steel

Steel is also continuing to be in high demand globally and prices are climbing every day so that no structural work can be quoted with a price that stand for a maximum time of more than two weeks.

 

Concrete

Due to short supply, lead times for structures have tripled to three months, 

Supplies to Spain are restricted due to the aforementioned global shortage and cost of shipping containers.

 

Plaster and plasterboard

There’s been an ongoing plaster shortage for several months, but supplies are much improved now compared to this time last year and even this time a few months ago. 

 

There are reportedly also shortages of: 

·         PE and PP plastics 

·         PIR insulation

·         Screws

·         Fixing

·         Plumbing items

·         Sanitaryware

·         Shower enclosures

·         Electrical products and appliances.