Post-covid recovery, inflation: the construction sector still in bad shape

Kiosk360. Like other sectors, construction and public works continue to face several challenges, mainly of an exogenous nature. Details in this press review from the weekly La Vie Éco.

“The construction and public works sector is sailing on sight”, writes Eco Life in its weekly delivery. Not having escaped the economic, national and international context, this key sector, given its contribution to employment and growth, continues to face several challenges, mainly of an exogenous nature.

According to the profession, united under the leadership of the National Federation of Building and Public Works (FNBTP), operators continue to suffer from a worrying crisis. This crisis is due, according to the same source, to the exceptional fallout from Covid and the consequences of the Russian-Ukrainian war.

Faced with this international situation, the profession maintains that the national construction company, all sizes and branches combined, is today suffering the unsustainable and irreversible repercussions of the unprecedented surge and instability in the prices of raw materials, certain materials and essential equipment used in the projects.

However, the construction and public works sub-sector is showing some signs of timid recovery, observes the weekly Eco Life. Thus, public investments (+6.5% of the budget compared to 2021) in several sectors, such as health or the port, have been able to maintain the dynamic among operators.

Still, the construction industry is today, like the real estate sector, facing the full brunt of the general increase in inputs since the beginning of the year, analyzes the weekly. This is the case for construction materials (steel, cement, aluminium, ceramics, etc.) which are subject to inflationary pressures.

Since January 2020, steel prices, for example, are up 72% to $489.2 per metric ton. For its part, aluminum rose 55.5% to $2,864.8 per metric ton, followed by a 92.4% rise in fuel prices (mostly diesel) to around $1,906.3. ton, list Eco Life.

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