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%).

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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.

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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The river that “dies” in the desert never reaches the sea and yet gives life to one of Africa’s largest natural refuges in a truly impressive way.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

Toyota launches “family hybrid van” with 7 or 8 seats, 1.8 hybrid engine, fuel consumption of up to 23.8 km/l, and a price equivalent to about R$ 104,000 without taxes, below the Tiggo 8 Pro Plug-in Hybrid sold in Brazil: meet the Noah Hybrid 2026 in Japan.

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Desert sand, previously discarded for being too smooth for concrete, becomes an ecological brick in the United Arab Emirates, dispensing with Portland cement, curing at room temperature, and attempting to transform dunes useless for construction into raw material for a new arid engineering.

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