Construction: a Quarter of Road Builders Complain of Staff Shortages

The business climate in construction hit a new record high in September, according to the results of the ifo Business Survey. Both the current business situation and the six-month business outlook improved slightly. Capacity utilisation remained unchanged at 77.8%, which was 1.6 percentage points higher than during the same period last year. The average order backlog across all segments of construction remained at 3.7 months (September 2016: 3.4 months). 31% of survey participants complained of construction constraints. Overall, 18% of contractors suffered staff shortages, while 7% reported a lack of orders. Since almost a fifth of the contractors surveyed are now complaining of staff shortages and this remains a thorny issue in all five sub-segments, it could have far-reaching implications for future growth in construction work. Reports of capacity shortfalls had previously been concentrated in the finishing-construction segment. Clear staff shortages have now obviously spread to the entire sector, and the problem has assumed a new dimension. According to contractors, price increases were implemented less frequently. More survey participants expect price hikes in the future. Companies are still planning to recruit more staff in the short term.