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Civil construction, which continues to rise in 2021, suffers from a shortage of inputs and the delay in delivering products from the steel chain
The Getúlio Vargas Foundation (FGV) released several data on civil construction. According to the FGV, the sector has been hit by rising construction material prices and the threat of shortages could harm the sector. Steel inputs, for example, which are in short supply in the market, such as flats, 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 registered an increase of 1,89% in February 2021, the highest record since June 2016, 1,93%. In this month, labor costs were practically stable, with a variation of 0,12%. Costs with materials and equipment increased 4,38%, the highest increase since November 2002, which was 4,41%.
According to a survey by FGV, the main positive effects of the increase in costs with materials and equipment in February 2021 are: carbon steel rebars and wires (21,34%), iron and steel tubes and connections (11,56%) , PVC tubes and connections (7,39%), ceramic brick/tile (2,57%) and electrical conductors (3,78%).
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Rise in input prices
With the increase in production, civil construction has been recovering and the highest historical growth of the last eight years is expected. In Brazil as a whole, the value of inputs, according to the National Civil Construction Index (INCC) increased by 17,72%.
Despite this, civil construction is one of the five sectors with the lowest drop in revenue (30%). Likewise, a study by the General Register of Employment and Unemployment (CAGED) shows that civil construction is the sector that generates the greatest job opportunities: 136.500 jobs.
