Construction costs are currently skyrocketing

Something new again about the current prices for a renovation

Roof renovation approx. 120 sqm floor area and 155 sqm roof area:
With insulation of the top floor ceiling approx. 56k
With insulation above the rafters approx. 61k

Altobelli, that is expensive! Had an offer in 2020 for a similar roof area, for something like 25k. I already thought that was expensive back then. Western NRW.

Geberit published figures this morning, Q3 sales -11%, EBITDA margin +4.5%... You have them to thank for that ;) We simply keep buying too much...

Geberit released figures this morning, Q3 revenue -11%, EBITDA margin +4.5%... You have them to thank for that ;) We simply still buy too much...

My point exactly: the construction industry simply does not follow the same market economy rules that apply elsewhere (or to put it less sensationally, it is a very special market when it comes to transparency and liquidity). From that perspective, lobbyists of the construction industry currently don’t really need to complain about lack of orders; they can simply raise prices at will, which means the provider gets more profit with the same or less revenue. Companies become more efficient and working hours in the construction industry can be reduced. And if the government holds back on subsidies, you can’t even accuse it of waste here. And everyone is happy (except the demanding party).

I paid 18,000 gross for the roof in 2021. 10mX10m gable roof. Including rafters, tiles, tinsmith work. I did the 180mm insulation between rafters and the vapor barrier myself. At that time, material costs were 1,200 euros.

Of course, the rules of the market economy also apply in the construction industry. Just not perfectly like in the textbook, but that is true for all other industries as well.

Geberit released figures this morning, Q3 revenue -11%, EBITDA margin +4.5%...
You have them to thank for that ;) We simply still buy too much...

The strategy is also known from the car manufacturers. When capacity is not sufficient for all orders, those with high margins are prioritized.

This is not the reason here, capacity would have been available in greater amounts.

Quote from an analyst report:
"Despite the very difficult market environment with significantly lower volumes and considerable wage inflation, profitability was able to be increased. Operating margins rose significantly, operating cash flow and earnings per share increased in local currencies. This strong performance was mainly enabled by the high operational flexibility, especially in the plants and logistics, the significantly lower energy prices and consistent price management."
Emphasis by me.

In plain English, manufacturing costs have decreased thanks to declining raw material and especially energy prices, but sales prices were not adjusted downward; consumers still have too much money anyway and buy it regardless.

Edit: with a bit of bad luck, we are now actually running into a wage/price spiral, and then things will get really interesting.