Commodity prices: Construction industry under cost pressure | STERN.de

Commodity prices: Construction industry under cost pressure |  STERN.de

The construction industry in Germany is complaining about rising raw material prices. The war in Ukraine has increased their concerns. Can more gravel and sand from Germany help – or more recycling?

Price increases on the raw materials markets, which are not least due to the war in Ukraine, are forcing the German construction industry to take consequences.

According to the Central Association of the German Construction Industry (ZDB), this includes the increased use of domestic raw materials, the more frequent reuse of building materials and a discussion about free trade zones. “The Russian attack on Ukraine has significantly more impact on the German construction industry than was assumed,” said ZDB General Manager Felix Pakleppa of the German Press Agency.

“We were all pretty much aware of the dependency on fossil raw materials such as coal and oil. But we also find that in the construction industry we are significantly dependent on material deliveries from Russia, Ukraine and Belarus,” says the association’s managing director. “Almost 40 percent of the steel used on construction sites in Germany comes directly or as a basic product from these three countries.” The prices for steel, but also for wood and for betumen, which is important in road construction, have risen significantly. “We’re finding, similar to the energy supply: we have to become less dependent on products from Russia,” said Pakleppa.

This includes, for example, thinking more about the use of local raw materials. “We have a lot in our country, but it is reluctant to be dismantled,” criticized the association’s managing director. «Which district administrator would like to authorize a gypsum or sand and gravel pit in his area? We’ll have to talk more about that.”

A new discussion about free trade zones in democratic countries is also urgently needed. “We need large free trade zones so that we are less vulnerable and susceptible to conflicts with Russia – and China – in the future.” In addition, the reuse of building materials is not only a major issue from the perspective of climate protection, but also to save costs, said Pakleppa.

The main association of the German construction industry sees it similarly. “The current crisis can also lead to an acceleration in terms of developments in sustainable construction,” said the association’s general manager, Tim-Oliver Müller. It is important to think about which raw material strategy should be pursued both in Germany and in Europe.

“The question is: Where can we reduce dependencies that exist today and have now brought us into this situation.” This also includes the topic of how building material cycles can be organized differently. “For example, about recycling,” said Müller. However, the crisis could also lead to building materials research being intensified in such a way that alternatives might be found for one or the other building material. “It’s not being funded enough at the moment, even by the public sector.”

Pakleppa also sees potential when it comes to mineral construction waste, such as concrete and stones. Only the smallest part of it is reused. “We really have room for improvement there.” However, there is the problem that there is still far too little demand from builders for recycled building materials – because of the prejudice that they are worse than new building materials. “Here the public sector must take on a much greater role model function,” demanded Pakleppa. It is also necessary to label the recycled building materials as a building product. “Then these prejudices will no longer exist.”

Source: Stern

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