A lot of these are used in the construction sector. Timber, steel, insulation material, paint, concrete and many more are in short supply, resulting in dramatic price increases for the sector in Luxembourg and exploding budgets.
Some construction projects have gone up by 30 to 70 percent or had to close entirely. The situation is expected to continue into the 3rd quarter of 2021.
18 construction firms were approved for partial unemployment by the economic comittee in the past two months. But the government is limited in terms of subsidies, says Pirate MP Sven Clement, and the problem can't just be solved from that angle.
The country should revert to more local production, such as sawmills, argue the CSV and other opposition parties. The price of timber alone has more than doubled over the past months.
According to the Competition Council, the sector was indeed suffering, but not panicked yet, said the Minister for the Economy Franz Fayot.
A timber production site is in fact in the works at Luxinnovation, with an online platform set to go live in autumn where supply and demand will be analysed and raw material offered. The aim is to promote regional supply chains for timber.
For public projects, there are currently discussions with the sector to hopefully approve deadline extensions and potentially suspend late penalties.
