Finland´s construction industry faces snags

The Finnish construction industry is experiencing unprecedented difficulties following Russia´s attack on Ukraine, reported Xinhua, quoting national broadcaster Yle on Monday.

Access to building materials is obstructed, with steel products in particular in severe shortage.

According to the Confederation of Finnish Construction Industries (CFCI), about a quarter of the steel used in Finland has previously come from Russia, Ukraine, and Belarus.

Juha Luhanka, director of the Building Materials Division at CFCI, told Yle that steel is used in all types of construction, and entire sites may be forced to cease operating without it.

The steel shortage extends across Europe, Luhanka said. During the COVID-19 pandemic, steel prices doubled, and the prices of some products are now almost four times higher than before. Increasing prices for raw materials will also push up product prices.

Betset, the largest manufacturer of concrete components in Finland, said it has enough steel stock to last until next summer.

However, Betset's sales director Jari Laajala told Yle that production could stop if raw materials runs out, and therefore the company is already preparing for such a situation in the future.

CFCI estimated that stocks of various building materials in Finland will be sufficient until next summer. However, serious difficulties could arise within the construction industry after that time.

The problems caused by the Ukraine crisis are more profound than the COVID-19 pandemic, according to CFCI.

If EU sanctions against Russia, or Russia's counter-sanctions lead to the closure of natural gas taps, the construction industry could face serious problems, Luhanka said.

There is also a lack of bitumen used in asphalting, glass, and electronic products required for heating, ventilation, and air conditioning equipment. In addition, there are difficulties in obtaining some wood products, such as parquet.

The shortage of steel products also affects the technology and automotive industries, which are major employers in Finland. Therefore supply chain blockages will be rapidly reflected in employment levels throughout the country, said Yle.