If the carpentry needs to be replaced on two million houses and apartments, that is 14 million window openings and about 10 million pieces of doors – says Goran Rodic, vice president of the Chamber of Construction.
All construction materials have become more expensive, due to the lack of labor and increased demand. The rise in prices will not stop, especially after the announcement of the state that it will subsidize the replacement of windows, doors and the installation of thermal insulation.
Slavica Zivkovic, the head of the Association of Modern Clay Products Industry of Serbia, says that blocks, bricks, tiles and tiles have risen in price by about five percent.
– The reasons for the increase in the price of rough construction material are not related to the global disturbance in supply chains, because we use domestic raw materials. The cause is the increase in the price of electricity and labor. The construction material industry has a problem with workers, because it is not possible to hire wage earners, as we import labor for construction. Last year, during the pandemic, the furnaces did not go out and we had a record production, which increased by five to eight percent – explains Zivkovic.
Our interlocutor points out that a lot of work and construction was done last year, and this trend continues this year as well. He says people have decided to invest their savings in real estate, which increases the volume of construction and material consumption. This is confirmed by the data of the Republic Geodetic Authority, according to which in the first quarter of this year the number of sold real estate was 40.7 percent higher compared to the same quarter last year, or 43.2 percent compared to the same period in 2019. Of course not all bought new real estate, but those who bought old ones also had to invest in renovation.
That construction will continue is confirmed by the fact that the turnover of construction land in the first quarter of this year increased by 84.7 percent compared to last year.
– There will be enough material and there is no fear of shortage. We export about 57% of our production to the countries of the region, and that is what cannot be placed on the domestic market. We are much more interested in selling here because the costs of transportation abroad make the material even more expensive – our interlocutor states.
According to her assessment, a much higher trend of higher prices of certain types of materials should be expected due to the announcement of the state that it will subsidize citizens to make their homes energy efficient. This will start an avalanche of higher prices of carpentry, thermal insulation materials and painting and craft works.
Goran Rodic, vice president of the Civil Engineering Chamber of Serbia, says that the price of carpentry depends on imported components, primarily imported profiles, and especially in plastic carpentry, the price of oil affects because plastic is an oil derivative. If the carpentry needs to be replaced on two million houses and apartments, according to his calculations, that is 14 million facade openings for windows and about 10 million pieces of doors. A rough estimate of these works is between five and seven billion euros.
– Such a large project is of exceptional importance for the Serbian economy, because it will significantly employ potters, carpenters and painters in every village. As for materials, we import everything. Most of them from Germany and other Western European countries and their companies will certainly be interested in this business – says Rodic.
According to him, European countries have stopped installing plastic carpentry in their houses and apartments. It is much cheaper than aluminum, but it can be harmful, because toxic gases are evolving and in our country it is even forbidden to use it on public buildings.
– The state will have to increase the quality control of imported raw materials, in order to avoid a counter-effect. There will certainly be those who will try to install cheap material at the expense of quality. We have to reduce energy consumption, and we can achieve that only with the help of good materials, which will be professionally installed. Now we consume energy of 20 liters per square meter, and the Germans consume seven times less and that is inadmissible – says Rodic.
He expects the increase in the price of carpentry and craft works that accompany the installation. Most of the construction materials have already become more expensive. For example, insulation materials from 30 to 70 percent, iron 40 percent and the like.
– Most construction material factories are in the hands of foreigners and their decisions cannot be influenced. Prices are based on demand, and since a lot is bought, it is normal for prices to jump. We have come to the conclusion that many construction materials are more expensive in our country than in the surrounding countries. Another factor that affects that is the lack of labor, which is becoming more expensive – says Rodic.
According to his assessment, the increase in the price of transporting goods from China will not significantly affect the increase in the price of construction materials, because we import few raw materials from the Far East, mainly preparations and fittings. Since they are of poor quality, few people use them, Politika reports.
