The Israel Builders Association says Israel’s structural industry has come to a head and will collapse unless it receives more to absorb rising prices for raw materials, according to the Israel Builders Association, an organization that represents structures and infrastructure corporations in the country.
Companies tasked with operating public buildings and infrastructure threatened to halt all structural projects, saying they may continue to deliver at agreed contract prices.
Companies complain that they are forced to charge sky-high fees from public projects, as there is no good enough government reaction to runaway commodity inflation. become lost cash for the corporations involved, they said.
A noisy protest this week in Tel Aviv showed an industry to get the message across. Yitzhak Moyal, president of the Histadrut Construction and Allied Industries Workers’ Union, threatened that “if the government continues to forget about it, we will shut down. “the entire structures industry. “
He told the protesters: “We are with you. It is not conceivable that the state would forget its just demands. It is not imaginable that this crisis will continue without the help of the government. “
The Times of Israel had reported in the past that the load of the uncooked fabric structure had exceeded all expectations for a long time, due first to the disruptions of the COVID-19 pandemic and then to Russia’s war in Ukraine.
Israel has a mechanism in place to deal with this, known as the structure index. It is a tool that is used when evaluating a task before the structure is completed. It creates a link that allows the value of the remaining paints to accumulate in line with the price structurings so that contractors take on fewer threats to the profitability of the allocations.
The most recent figures from the Central Bureau of Statistics show increases of 4. 4% between January and June in the residential structure index, 5. 3% in the advertising structure index and 5. 1% in the pavement and bridge index. These increases are significant, in terms of seniority increases in indices. But global resources recommend that genuine increases in structural crude prices this year are expected to be between 10% and 25%, with raw materials such as cement, aluminum and wood emerging strongly.
Israeli construction corporations say governments such as Italy, Greece, France and Bulgaria have discovered other tactics to compensate contractors for value increases by applying retroactive increases and subsidizing new projects.
Construction leaders say the Israeli government has not come up with solutions. They say the increases to date in the structure index are inadequate and sometimes do not apply to paintings in the public sector. Although there have already been negotiations on this factor with the government, those talks have gone nowhere.
The Builders Association says the failure to resolve the scenario has led to the closure of more than six hundred contractors in 2021, with many more suffering from uncertainty about their long-term under existing agreements.
Builders are urging the government to offer more investments for projects beyond the structure index, to reflect the fact that it costs much more to build now than it did a year ago. They say the profit margins on those projects are inadequate to the point of building on the prices of the raw curtains you’re seeing lately.
Raul Sargo, president of the Builders Association, said in a statement this week that “the Israeli government will have to see the contractor as a spouse and not as an enemy. . . The scenario is serious and harms traders and workers. For the sake of industry and for the sake of Israel, we ask the government to join us in helping us keep our promises.
This is the first time the Israel Builders Association has complained about emerging prices from raw curtains and the limited effect of the structural index, but now it seems to be raising the stakes as value increases around the world show no signs of slowing down and delays and shortages abound. .
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