What happened
Spanish construction materials manufacturers have warned about the growing pressure from energy costs and supply chain difficulties, according to Interempresas. These factors are affecting both production costs and the industry's competitiveness.
The construction sector faces an uncertain scenario due to rising energy and raw material costs, which could increase by more than 24% and 16%, respectively, by 2026. This situation is driven by the international geopolitical context and the conflict in the Middle East.
Currently, domestic demand in housing, renovation, and civil works sustains part of the sector's activity, but imbalances persist related to industrial costs and foreign competition. The lack of stock of key inputs such as plastics and metals adds further uncertainty.
Why it matters to a construction company
Rising costs directly affect small and mid-sized construction companies, which depend on stable prices to plan and carry out their projects. An increase in materials and energy can translate into higher budgets and reduced margins.
In an already competitive market, these changes can mean the difference between winning or losing a contract. Construction companies that cannot absorb these costs or pass them on to their clients could see their financial viability compromised.
In addition, rising prices of raw materials such as aluminum and copper, which have increased by 27.2% and 28.7% respectively, according to Interempresas, can affect construction companies' ability to meet the deadlines and specifications of their projects.
What changes in day-to-day site operations
Rising material and energy costs directly affect the workflow on construction sites. Construction companies must adjust their budgets and schedules, which can delay project execution and affect final delivery.
Tighter budgets require more precise management of quantity takeoffs and payment certificates. Construction companies must be more rigorous in tracking expenses to avoid cost overruns and ensure project profitability.
Site managers and purchasing managers are the first to notice these changes. They must watch for price fluctuations and look for viable alternatives to keep costs under control without compromising project quality.
Specific cases
Imagine a construction company that is about to start a renovation project. With rising costs, it has to reassess its initial budget and look for suppliers that offer competitive prices without sacrificing quality.
Other companies are opting for strategies such as buying materials in advance or sourcing from local suppliers to reduce logistics costs. These measures can help mitigate the impact of price increases.
For these strategies to work, it is crucial that construction companies keep open communication with their suppliers and stay on top of market trends. Only then can they adapt quickly to changes and ensure the viability of their projects.
Data and context
According to Interempresas, the average price of electricity in 2025 reached €65.52/MWh, 37.4% more than in 2019. Gas also saw a significant increase, with an average price of €36/MWh, 135% higher than six years earlier.
These increases are part of a trend of rising industrial prices, especially in sectors such as metallurgy and chemicals. This volatility is a constant challenge for companies in the sector.
However, the data does not reflect how these increases affect each company individually. Small and mid-sized construction companies, with less room to absorb costs, are the most vulnerable in this context.
Risks and limits
Rising costs affect not only budgets but also delivery times. Construction companies must be realistic when estimating time and costs, since any deviation can negatively affect their reputation.
In some cases, it is not worth taking on projects with such tight margins. Companies must carefully evaluate each project and consider whether they can absorb the additional costs without compromising their financial stability.
At the organizational level, the risk of failing to adapt to these changes can lead to a loss of competitiveness. Construction companies must be agile and willing to change their strategies to stay relevant in the market.
What a company can do now
Construction companies can take concrete steps to mitigate the impact of costs, such as renegotiating contracts with suppliers or looking for cheaper alternatives for materials.
When deciding on new projects, it is crucial to consider not only the initial cost but also possible fluctuations in material and energy prices. Careful planning can make the difference between success and failure.
The realistic next step is to evaluate the use of construction management tools such as Bloqbase, which can help companies gain greater control over their costs and processes. We are currently in a free pilot phase with real companies in the sector.
Sources
Interempresas: https://www.interempresas.net/Almacenes-materiales-construccion/631549-sector-materiales-construccion-alerta-sobre-aumento-costes-energeticos-suministro.html