Holcim Warns of Labor Shortages Impacting European Construction Recovery
Labor shortages may hinder Europe's construction recovery, as Holcim and Saint-Gobain indicate growing staffing challenges. The region requires approximately 10 million new homes, complicating progress as builders face difficulties in hiring physically demanding roles.
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Holcim's CEO Miljan Gutovic has identified labor shortages as a potential barrier to Europe's construction recovery, despite emerging signs of growth. The construction sector is under pressure, with significant impacts noted in Europe and Australia, and constraints in staffing affecting data center projects in North America, which are now spreading to Europe.
The need for around 10 million new homes in the region exacerbates the situation, as builders struggle to recruit workers for outdoor jobs. To mitigate this issue, some markets may increasingly rely on labor from South-East Asia, with Chinese contractors gaining traction by offering comprehensive project solutions.
Holcim has engaged a Chinese contractor for its Obourg cement plant modernization in Belgium. While challenges persist, Gutovic anticipates a potential rebound in residential construction in Europe in the latter half of the year, supported by rising building permits in Germany and improvements noted in France. Holcim's recent initiatives, including the acquisition of Xella and advancements in modular walling systems and AI technology, may alleviate labor demands and enhance operational efficiency.
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