Construction in Portugal registers a good moment, but with challenges

Portugal recorded a good economic performance in the construction index, with 2.1% growth in July this year. But, the galloping inflation that was felt in September/October conditioned the sector.

The indicators for July with regard to construction in Portugal were positive. According to the National Institute of Statistics (INE) there was a year-on-year growth of 2.1%, compared to the 1.6% increase in June.

Although satisfactory, these growth indicators were lower than those registered in April 2022, in which the construction production index registered a year-on-year growth of 3.7%. The construction of buildings increased by 3.3% and civil engineering grew by 4.4%.

Inflation restricts further growth

It can already be seen that inflation is having a major impact on the economy. In addition to the small percentages that may be registered in the growth of the construction sector, the increase in inflation is affecting all production and distribution channels.

THE price rise, taking August data from INE as a reference with regard to construction costs for new homes, was 12.6% in year-on-year terms. There was an increase in the prices of materials and also in the costs that the various players of the sector have with the workforce.

It should be noted that, still according to INE indicators, the prices of construction materials rose by 16.6% year-on-year, while labor costs increased by 6.9%. In the month in July it was 7.3%.

What materials and products go up

In the context of construction, the materials that go up the most, according to INE, are ceramic products, with prices rising by around 70%. Other materials show increases of around 20%, such as cement, cork agglomerates and tiles, wood and derivatives, carpentry and PVC pipes.

Adding to these is the diesela cross-cutting product for all players in the transport sector, namely the transport of concrete.

Proper conveying of concrete is critical

Concrete transport companies are, in the current economic climate, being the most affected. The expenses with concrete mixer trucks (especially designed with drums suitable for transporting concrete), in terms of fuel, they are representative of the difficulties that the sector also has to face, in addition to that of raw materials.

Concrete transport, in addition to its own rules, which include, for example, the weight transported by trucks, also incorporates the driver’s driving time factor.

In addition to this item, in order to maintain the quality of the concrete, do not exceed the time limit of two hours, between the moment it leaves the manufacturing point and the unloading point. In this way, the quality of the final product is guaranteed, which is essential for the final integrity of the work.

This means of transport – the concrete mixer truck – is indispensable to guarantee the success of any construction process and is essential in the process of mixing the components of the concrete during transport.

The range of vehicles with these characteristics is wide and varied. Therefore, each company must be especially careful in choosing the concrete mixer truck best suited for the intended function.

The offer in this market segment is vast. But one of the components that will dictate the greatest differences will be the total capacity volume and, consequently, the total amount of concrete that the drum will be able to mix. The correct choice is essential to make the process effective and with quality of the final product.