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The Civil Construction Industry, Which Continues to Thrive in 2021, Faces Supply Shortages and Delays in Deliveries of Steel Chain Products
The Getúlio Vargas Foundation (FGV) released various data on the civil construction sector. According to FGV, the sector has been impacted by rising construction material prices, and supply shortages may harm the sector. Steel inputs, for example, which are in short supply in the market, such as sheets, plates, rebar, wires, and even nails, may have deliveries scheduled for more than 120 or 130 days.
Civil Construction Data
The National Construction Cost Index showed an increase of 1.89% in February 2021, the highest since June 2016, which was 1.93%. This month, labor costs remained practically stable, with a variation of 0.12%. Material and equipment costs increased by 4.38%, the highest rise since November 2002, which was 4.41%.
According to a survey by FGV, the main positive effects contributing to the increase in material and equipment costs in February 2021 are: carbon steel rebar and wires (21.34%), iron and steel pipes and fittings (11.56%), PVC pipes and fittings (7.39%), ceramic bricks/tile (2.57%), and electrical conductors (3.78%).
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Increase in Prices of Inputs
With the increase in production, the civil construction sector is recovering and is expected to achieve the largest historical growth in the last eight years. Throughout Brazil, the cost of inputs, according to the National Construction Index (INCC), increased by 17.72%.
Despite this, the civil construction sector is one of the five sectors with the least revenue decline (30%). Similarly, a study by the General Register of Employment and Unemployment (CAGED) shows that the civil construction sector generates the most job opportunities: 136,500 jobs.
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