From the cost of iron and steel being risen by 61% to blockage in supply chains from Ukraine and Russia, construction is facing an imbalance between supply and demand. Companies are choosing to delay or abandon projects altogether. TV2’s survey found that 44 out of 78 municipalities have postponed or dropped construction projects. Will the market be hit by a hard slowdown?
Companies’ current workforces cannot be maintained. In the current crisis of living cost and rising energy prices, unemployment is affecting people of Aarhus greatly. Lasse Ludqvrist of SMV Denmark says 2,063 jobs have been lost; this was the highest level in the first half of 2011.
SMV’s analysis found the number of commercial buildings started this six month period has never been so low, creating the biggest ever decrease in corporate building activity. Companies want to save money elsewhere, so construction companies are holding back on price increases, chief economist at SMV Danmark, Martin Kyed has found. “This may be because they are afraid that a large and rapid price increase could ruin a good, long-term customer relationship, and therefore they eat part of the price increase themselves.”
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