Most people think about remodeling their house or kitchen or doing some modifications to their Normandy property this spring, but it appears that prices are already skyrocketing. So, is there any professional opinion on whether they should go ahead with it?
However, the conflict in Ukraine is exacerbating the effects on the cost of construction materials for renovation and new construction, as well as causing delays in builders’ receiving essential supplies.
Covid had already influenced the construction industry, causing multiple project delays owing to health limitations.
This means that remodeling or building a house in France now is almost 20% more expensive than it was last year.
The war in Ukraine Affected The Remodeling Costs
Following the invasion of Ukraine, the Construction Leadership Council (CLC) recently warned of likely significant price rises on remodeling and building supplies, putting additional strain on already stressed supply chains.
According to the CLC, building, and kitchen remodeling material costs are rising by 10% on average, with a 20% increase projected for products that utilize more energy in their manufacturing process as European oil and gas prices skyrocket.
In the same week, British Steel announced a £250 per tonne price hike on all of their structural sections, effective immediately. This follows a series of price increases by the corporation in January and early March to stay up with the turbulent market.
According to the CLC, British Steel attributes the rising costs to rising energy prices, as well as steep increases in the prices of metallurgic coal and coke, ferrous scrap, and iron ore.
What Effect has The Ukrainian war had on Remodeling Materials?
The consequences of the Ukraine-Russia conflict are yet to be determined. Although items from Ukraine, Russia, and Belarus accounted for only 1.25 percent of remodeling product imports into the UK last year, the crisis could have a greater impact on raw resources.
According to the CLC, the pinch will be caused by the cost and availability of raw resources such as copper, aluminum ore, oil, and bitumen, which are utilized in the production of other building remodeling materials such as:
- Copper is used in plumbing, electrical wiring, cladding, flashing, and solar panels, among other things.
- Alloys made from aluminum ore are used in window and door frames, air conditioning and heating components, solar protection, and exterior facades.
- Fuel, polymers, engine oils, and lubricants are all made from oil.
- Bitumen is used for road and path paving, roofing, plastics, sealing, and insulating materials, such as paint and damp proofing.
- Semiconductors—Neon (used in microchip production)
Neon, in particular, is endangered. Ukraine was manufacturing roughly 70% of global neon exports immediately before Russia’s invasion, which was critical to the production of microchips due to their use as a semiconductor.
Across the border, Russia’s retaliatory export embargo on some timber products may disrupt availability for the building trade.
While most products are currently in good stock and available, the CLC says that supply issues continue to affect bricks, aircrete blocks, roof tiles, steel lintels, cable trays and trunking, manhole covers, gas boilers, and some electrical equipment.
Should They Postpone Remodeling or new Construction Projects?
Many industry professionals agree that when there is a crisis that influences prices, they rarely return to lower levels once the issue has passed. So, precisely one should wait a bit for the lower building, house, or Kitchen Remodeling Costs. To get an idea of remodeling costs, contact us.
