Construction Sector Is Affected by Steel Shortage and Rising Input Prices

Written by Roberta Souza

Published on 10/03/2021 at 16:03

Construção civil / Fonte: reprodução – Via Google

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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%).

ARTICLE CONTINUES BELOW

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.

Construction Sector Is Affected by Steel Shortage and Rising Input Prices

The Civil Construction Industry, Which Continues to Thrive in 2021, Faces Supply Shortages and Delays in Deliveries of Steel Chain Products

Civil Construction Data

Increase in Prices of Inputs

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Construction Sector Is Affected by Steel Shortage and Rising Input Prices

The Civil Construction Industry, Which Continues to Thrive in 2021, Faces Supply Shortages and Delays in Deliveries of Steel Chain Products

Civil Construction Data

Increase in Prices of Inputs

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Brazil’s most feared highway will become the “most sustainable road on the planet” with a R$ 1.5 billion project, 170 wildlife crossings, 50 bridges, and environmental protection in an area of 40,000 km² in the heart of the Amazon.

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Panasonic enters the era of electric bicycles with the new Xealt L3 equipped with high-performance reinforced axles, hydraulic disc brakes, more durable urban tires, and a range of up to 90 km with a recharge time of just 4 hours.

4 used cars starting from R$ 50,000 with a flex engine achieve up to 17.1 km/l, come with six airbags, multimedia with Android Auto, and a trunk of up to 475 liters; the list includes Onix Plus, HB20S, Peugeot 208, and Mobi.

Brazil’s most feared highway will become the “most sustainable road on the planet” with a R$ 1.5 billion project, 170 wildlife crossings, 50 bridges, and environmental protection in an area of 40,000 km² in the heart of the Amazon.

Pope Leo XIV meets Ferrari Luce, sits in the driver’s seat, takes the wheel, and sees the electric car worth R$ 3.2 million that divided opinions in the world of supercars.

Renault Kardian 2027: with a 1.0 TCe Flex engine, six-speed manual transmission, up to 116 hp and 22.4 kgfm, the SUV will be lighter and more economical to cost less than Fiat Pulse, VW Tera, and Citroën Basalt in the Sustainable Car Program.