The sector of construction has been hit hard by inflation. Among the materials with the highest increase, the builders highlight steel, coal and asphalt, which has affected the profit margin of these projects.
(‘Affectations on the roads generate 30% of cost overruns for vehicles’).
According to the latest Corficolombiana report, the increase in the cost of construction supplies has been one of the biggest concerns within the road infrastructure sector during the last year and a half, and highlights that Within the 74 materials under monitoring, steel and asphalt explain 45% of the average monthly variation of the last year.
“Much of the upward pressures respond to external factors such as the disruption of supply chains and the increase in the cost of steel inputs (coal, iron ore and scrap) and asphalt (oil)”, istated the report.
Even Corficolombiana has said that these rising costs are the highest annual growth since 2012. In addition, it said that the impact of the higher costs is due to public works and execution via concessions.
(Barrancabermeja and Barranquilla join).
On the other hand, among the projections, Corficolombiana expects the GDP of the civil works sector to expand 3.5% in 2022.
“This as a result of the expected progress of the 4G projects and the acceleration of public execution in the electoral year, despite the expected impact of the higher cost of supplies” concluded.
The report also says that the shock of inputs affects the construction of public works at the same time and two quarters later, the effect is not significant on the execution of PPP projects.
(‘Vías Verdes’, the project to recover the railway corridors).
Corficolombiana also estimates that a 1 pp increase in material costs reduces the growth of highway construction by 0.4 pp in the same quarter.
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