Construction slump meets natural stone market: Is the crisis set in stone?

Whether it’s houses, staircases, or squares: natural stones are the foundation of everyday life. Yet, the global construction industry faces challenges such as rising raw material prices and supply chain issues, leading to cost increases and project delays. These factors directly impact the natural stone industry, where demand for materials like limestone and granite is declining, yet paradoxically, prices are rising. Current market developments and why stock clearance auctions can be an opportunity for construction companies…

Rising building material prices, material shortages, supply chain issues, labour shortages, and high inflation rates: The outlook for the global construction industry in 2024 remains uncertain as these factors lead to rising construction costs, project delays, and low investment willingness.

Contrasts between Europe and Asia in the construction industry 2024

Despite challenging conditions, a growth of 3% is expected this year in Europe, as individual countries support their economies through targeted subsidies. While residential construction continues to suffer, commercial construction and public construction show slight signs of recovery. In contrast, Germany, once the growth engine of the construction industry in Europe, is expected to see a decline in revenue and employment.

In China, one of the world’s largest construction nations and an important trading partner for European construction machinery and building materials companies, the downturn in the real estate sector is noticeable. While in Europe, rising construction costs, low interest rates, and an imbalance between supply and demand are driving up property prices, in China, regulatory interventions, economic decline, and financial problems of real estate developers are leading to a price decline. Nevertheless, the Asian region remains the largest construction market in 2024 due to its dynamic economies and population growth.

Source page: Construction slump meets natural stone market: Is the crisis set in stone? | Surplex GmbH