The construction industry has completed more apartments than it has done in 20 years.
At the same time, there is a risk of massive price increases and compulsory breaks.
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Material deliveries pending.
Due to increased international demand, some delivery times have been extended to weeks, and the situation could worsen in summer.
© Soeren Stache
Munich - Housing construction in Bavaria reached its highest level since 2000 in the 2020 corona crisis year. 64,013 apartments were completed, 7.1 percent more than in 2019. The trend seems to be continuing, with the number of building permits in Bavaria skyrocketing in the first quarter of 2021. It increased by 25.8 percent to 20,134 apartments. According to the Federal Statistical Office, 306,376 apartments were completed throughout Germany, 4.6 percent more than in the previous year. That was the highest level since 2001. However, the figures again fell short of the federal government's target of 375,000 new apartments per year.
Despite full order books, the construction industry finds itself in a dilemma. Many building contractors complain about expensive and poorly available material. Almost all building materials are affected. According to the head of the Bavarian Chamber of Crafts, Franz Xaver Peteranderl, there is a shortage of almost everything from sawn timber to plastic buckets for color filling (see interview). According to studies by the Bavarian Construction Industry (BIB), the shortage of building materials is caused by a chain of many circumstances: At the beginning of the pandemic, many plants, especially in insulation production, were shut down, among other things to maintain the systems. Despite the increased demand since last summer, these have not yet been able to return to full capacity. In addition, there is a strong increase in international demand, especially for sawn timber.The most important factors here are China and the USA, the latter because their traditional supplier Canada can no longer meet demand. These new buyers sometimes pay a multiple of the usual prices in Germany. In addition to wood, the price of crude oil has also risen, which in turn has led to a shortage of materials such as epoxy resin. These global shortages meet expensive and limited container capacities, which hinders short-term deliveries. Experts say that container prices, which were at a low point in the middle of last year, have multiplied to this day.In addition to wood, the price of crude oil has also risen, which in turn has led to a shortage of materials such as epoxy resin. These global shortages meet expensive and limited container capacities, which hinders short-term deliveries. Experts say that container prices, which were at a low point in the middle of last year, have multiplied to this day.In addition to wood, the price of crude oil has also risen, which in turn has led to a shortage of materials such as epoxy resin. These global shortages meet expensive and limited container capacities, which hinders short-term deliveries. Experts say that container prices, which were at a low point in the middle of last year, have multiplied to this day.
The effects are serious, some insulation materials have delivery times of up to three months, some PVC manufacturers invoked force majeure due to accidents in their factories and canceled deliveries that had already been promised.
In addition to delays, the industry is burdened by drastic price increases.
According to the BIB, construction timber and OSB boards have increased by 20 percent in April and May, and up to 50 percent for sewer base pipes.
Robert Huber is the association's spokesman and warns: “With sewer pipes, some formats are not available at all.” Such a deficiency can send entire construction sites into a forced break.
There is no improvement in prospect for some goods, on the contrary: According to BIB, further increases in timber prices are expected in June.
Holger Seit, spokesman for the State Association of Bavarian Building Guilds, is alarmed: "We haven't had a situation like this for at least 20 years."
It is still “only” a financial problem, “only a few companies had to register short-time work due to a lack of material.” If the shortage lasts for the rest of the year, which Seit assumes, “construction sites may come to a standstill from summer on”.
And that would be tough.
"As a result, not only can deadlines not be met, unfinished buildings are also exposed to the weather and, in the worst case, can be damaged."
Many commuters in Munich can currently sing a song about the general shortage.
Due to the renovation of the tracks, there are currently no trams running on Sonnenstraße, but instead rail replacement services in the form of buses, which have to torment themselves through the mostly stagnant traffic.
On Wednesday, the responsible municipal utilities announced that construction would be delayed by two weeks - due to a lack of building materials.
Johannes Boos from MVG explains: “Specifically, it is about an insulation layer made from a waste product from kerosene production.
And because there is little flown at the moment, production has been shut down. "
Under the following links you can read how the lack of wood affects the Würmtal and the Weilheim-Schongau district.
List of rubric lists: © Soeren Stache
