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Construction is still failing to recover: demand for building supplies has fallen by almost 30% this year - Infobae
Source:
www.infobae.com
November 06, 2024
This was confirmed by the Construya Index, which measures activity. The cumulative sales of products such as bricks and cement show a significant decline. This is the third month that has seen inter-monthly declines.
Refurbishing a home always adds value to the property. It is expected that the sale of supplies will recover in the short term (Illustrative Image Infobae)
The Construya Index (IC) , which assesses the evolution of the volumes of construction products sold to the private sector, showed a decrease of 2.79% in October 2024, compared to the previous month, according to data provided by the Construya Group. This is the third drop recorded in the seasonally adjusted monthly measurement, after several months of recovery in the sector. Thus, the index is 28.20% below the level recorded in October 2023.
The Construya Group, which brings together leading companies in the manufacture of construction supplies, observed that the demand for materials for residential construction is increasing very gradually.
The products measured by the index include ceramic bricks , Portland cement , lime , long steel , aluminum carpentry , adhesives and pastes , waterproofing paints , sanitary ware , boilers and heating systems , taps , water and gas conduction systems , floors , ceramic coverings and electrical and electronic materials .
Sales from January to October 2024 closed with a 28.7% drop compared to the same period of the previous year, reflecting a challenging context for the construction sector. This situation occurs in a context where, after having hit a low point last March, shipments of materials to the commercial channel fell again.
It is important to note that the Construya Index is not comparable with the Synthetic Index of Construction Activity (ISAC) published by INDEC and recently published as reported yesterday by Infobae , since both indexes measure different aspects and periods of the sector.
In fact, ISAC's latest analysis of apparent consumption of construction inputs in August 2024 reveals significant year-on-year declines in several key materials.
Among the most notable declines are granite and limestone mosaics (-51.2%), ceramic sanitary ware (-40.5%), ready-mixed concrete (-37.7%) and asphalt (-31.1%). In addition, the cumulative total for the first eight months of the year shows a similar trend, with declines in asphalt (-53.6%), iron and steel for construction (-44.2%), and granite and limestone mosaics (-43.3%) compared to the same period in 2023.
In the private sector, construction work is continuing, although there is still a need to start new projects and for families to regain the savings capacity to renovate or expand their homes. The recovery of residential construction still faces challenges, especially in an economic context that limits access to resources for improvements in different spaces.
Pedro Brandi , president of Grupo Construya, told Infobae that the construction materials market showed a recovery starting in March. “This recovery was strong at the beginning, especially until August, but the pace later moderated. Even so, a constant flow of work in progress is observed, which suggests a positive trend in the sector.”
One of the factors that drives the activity is the access to mortgage loans, which can reach amounts of up to $80,000,000 in some cases and up to $100,000,000 if they are personal , especially for those who have a plot of land or a pre-existing building. These loans allow owners to carry out extensions or renovations, focusing on areas such as bathrooms, kitchens and the replacement of openings, which are usually the most requested interventions.
Brandi highlighted the importance of this trend in a context of gradual economic recovery, driven by factors such as the return of credit, money laundering and an incipient recovery of wages. “Expectations in the sector are optimistic and growth is expected to continue consolidating in the coming months,” Brandi concluded.
www.buysellba.com
Source:
La construcción sigue sin recuperarse: la demanda de insumos para edificar acumula una caída de casi 30% en el año
Así lo confirmó el Índice Construya que mide la actividad. El acumulado de ventas de productos como ladrillos y cemento muestra un retroceso significativo. Se trata del tercer mes que registra caídas intermensuales
www.infobae.com
November 06, 2024
This was confirmed by the Construya Index, which measures activity. The cumulative sales of products such as bricks and cement show a significant decline. This is the third month that has seen inter-monthly declines.
Refurbishing a home always adds value to the property. It is expected that the sale of supplies will recover in the short term (Illustrative Image Infobae)
The Construya Index (IC) , which assesses the evolution of the volumes of construction products sold to the private sector, showed a decrease of 2.79% in October 2024, compared to the previous month, according to data provided by the Construya Group. This is the third drop recorded in the seasonally adjusted monthly measurement, after several months of recovery in the sector. Thus, the index is 28.20% below the level recorded in October 2023.
The Construya Group, which brings together leading companies in the manufacture of construction supplies, observed that the demand for materials for residential construction is increasing very gradually.
The products measured by the index include ceramic bricks , Portland cement , lime , long steel , aluminum carpentry , adhesives and pastes , waterproofing paints , sanitary ware , boilers and heating systems , taps , water and gas conduction systems , floors , ceramic coverings and electrical and electronic materials .
Sales from January to October 2024 closed with a 28.7% drop compared to the same period of the previous year, reflecting a challenging context for the construction sector. This situation occurs in a context where, after having hit a low point last March, shipments of materials to the commercial channel fell again.
It is important to note that the Construya Index is not comparable with the Synthetic Index of Construction Activity (ISAC) published by INDEC and recently published as reported yesterday by Infobae , since both indexes measure different aspects and periods of the sector.
In fact, ISAC's latest analysis of apparent consumption of construction inputs in August 2024 reveals significant year-on-year declines in several key materials.
Among the most notable declines are granite and limestone mosaics (-51.2%), ceramic sanitary ware (-40.5%), ready-mixed concrete (-37.7%) and asphalt (-31.1%). In addition, the cumulative total for the first eight months of the year shows a similar trend, with declines in asphalt (-53.6%), iron and steel for construction (-44.2%), and granite and limestone mosaics (-43.3%) compared to the same period in 2023.
Tendencies
Although a large-scale reactivation of public works is still lacking, several provinces are already resuming projects that do not depend on national funds, as was the case under the previous government. Little by little, machines and workers are once again being seen in action on provincial routes, such as 6 and 11 in Buenos Aires province.
In the private sector, construction work is continuing, although there is still a need to start new projects and for families to regain the savings capacity to renovate or expand their homes. The recovery of residential construction still faces challenges, especially in an economic context that limits access to resources for improvements in different spaces.
Pedro Brandi , president of Grupo Construya, told Infobae that the construction materials market showed a recovery starting in March. “This recovery was strong at the beginning, especially until August, but the pace later moderated. Even so, a constant flow of work in progress is observed, which suggests a positive trend in the sector.”
One of the factors that drives the activity is the access to mortgage loans, which can reach amounts of up to $80,000,000 in some cases and up to $100,000,000 if they are personal , especially for those who have a plot of land or a pre-existing building. These loans allow owners to carry out extensions or renovations, focusing on areas such as bathrooms, kitchens and the replacement of openings, which are usually the most requested interventions.
Brandi highlighted the importance of this trend in a context of gradual economic recovery, driven by factors such as the return of credit, money laundering and an incipient recovery of wages. “Expectations in the sector are optimistic and growth is expected to continue consolidating in the coming months,” Brandi concluded.
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