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

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Workers were opening a modern road in Dover when they found, 6 meters below the asphalt, a 3,500-year-old boat made of stitched oak and plant fibers.

A giant brown band visible from space, approximately 8,850 kilometers long, connected Africa to America in the Atlantic Ocean, and satellites revealed that it is neither land nor pollution, but the largest accumulation of seaweed in the world, which broke records in 2025.

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

Two 17-year-old Kenyans use coconut shells, corn cobs, and recycled materials to create an exhaust filter that reduces 93.3% of pollutant particles and wins an environmental award in Africa.

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Motorcyclist sees excavator arriving at the edge of a river in Bosnia, calls neighbors in minutes and turns a hydroelectric project into a resistance lasting more than 10 years with five expired concessions.

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