The German construction industry is hampered by a shortage of materials

German construction is hampered by the greatest shortage of materials in decades, according to a survey by the Munich Ifo Institute. According to Ifo's analysis, builders are currently struggling with the worst shortage of materials since 1991, which limits activity in the sector. In April, 23.9 percent of companies surveyed said they had problems with timely deliveries of building materials. By comparison, in March it was only 5.6 percent. The survey was part of a monthly survey, based on which Ifo calculates the business confidence index. According to the institute, 800 companies from the construction sector took part in it. "Material is missing in many places, we hear from the industry. Due to supply problems, prices have risen in several markets at the same time," said Ludwig Dorffmeister, a construction expert at Ifo. He pointed to the rise in prices of structural steel, wood and plastics. According to Dorffmeister, production capacity has been reduced due to the pandemic. In the meantime, however, demand has risen sharply than expected. The recent shortage and sharp rise in prices has mainly affected timber. Prices often jumped by up to 300% year-on-year. The Ifo Institute also pointed out the extraordinary factors that currently have a negative impact on the timber industry. These include, for example, the relatively cold long winter in some parts of the United States, which has reduced production and caused supply delays.