Prices of construction, home and garden materials still rising
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Between January and October, the prices of construction, home and garden materials grew by an average of 11%, while some items suffered significant price increases, such as OSB, which increased by 55%, and thermal insulation, which increased by roughly 30%. The increase was even more evident in October, with OSB increasing by more than 100% year over year. There is little to no evidence that the trend will change. The increasing costs for energy, raw materials and labor speak in favor of further increases.
According to a recent study, in October alone, the prices of construction materials increased by over 20% y/y, with OSB boards rising by 101% and thermal insulation by 54%, Interia reported, with reference to Polskie Sklady Budowlane. Other product categories were also influenced by the increases, e.g.: roofing and guttering grew by 13% over the nine months, and in October alone – by 19%; lighting and electrical equipment (+9%/+12%, respectively), tools (+7%/+12%), woodwork (+6%/+13%), construction chemicals (+5%/+9%), cement and lime (+5%/+6%).
Rising prices of transported goods, problems in the supply chain or slowed down transport from China and the United States make the construction industry face serious shortages of components. Many construction materials are in short supply and their scarcity is driving significant price increases. Big jumps in the price of materials, such as polystyrene foam, which has risen by 120%, is one of the most serious challenges currently faced by the construction industry.
Poles are eager to renovate their homes, despite materials prices going up
The results of the survey conducted by Bricoman Polska and GfK show that the materials market was worth over PLN 84bn last year, and households are responsible for as much as 80% of this result. This means that Poles spend more money only on buying food than on renovations. According to Przemysław Dwojak, Senior Director at GfK, after adding labour expenses to the costs of renovation and construction materials, the obtained amounts would be twelve-digit. This shows that Poles are more willing to spend money on renovating their homes and improving their standard than on travelling or recreation.
Apart from the great interest in renovations, another trend can be observed on the market. More and more people planning a renovation decide to buy necessary products on the Internet. As many as 55% of respondents of the “Rzeczpospolita” survey use the possibility to order materials online.
The sharp rise in prices of construction materials and problems with their availability are now the most pressing barriers to construction companies’ day-to-day operations. According to construction companies, only problems with the availability of workers, both qualified specialists and those employed for basic works, are less severe.
More:
- The sector at the threshold of large investments in the time of turbulence on the construction materials market. The annual industry debate “6th Forum Building Sector in Poland” is behind us!.
- Building materials’ prices rise again: polystyrene foam up by 120%
More information in PMR reports:
- Price forecasts for the main building materials, Q3 – Q4 2021
- Construction sector in Poland. Market analysis and development forecasts for 2021-2026 (updated each quarter)
- Construction sector in Poland – Regional analysis. Market analysis and development forecasts for 2021-2026
- DIY retail in Poland 2021. Market analysis and development forecasts for 2021-2026
