Sand consumption casts doubt on the future of the construction industry

In recent years there has been a file 33% increase in the cost of materials used in construction. In this context, the London Metal Exchange denounced this The price of metals increased by 53%. During the last fiscal year corresponding to the academic year 2021-2022. But this isn’t the only material where prices have skyrocketed over the past year, according to caixabankIncreases accrued to materials such as cement, concrete and wood increased by 19.6%, 23.3% and 27.7%, respectively. Furthermore, all of these residential building materials share one component that appears vital to their alloys: the sand.

Sand is an essential component of the construction sector. To build a house you need approximately 200 tons of sandWhile large buildings carry more than 3,000 tons and highways about 30,000. Experts expect this demand to rise in the coming decades if we are to keep up with new construction. But the price of this material has not stopped rising since 2019, the year a ton of sand cost 55 euros, compared to 65 euros today.

the inflationRising prices and the crisis in the real estate sector have accelerated the scarcity of this natural resource, as stated in the report “Sand and Sustainability: 10 Strategic Recommendations to Avoid the Crisis” issued by the Grid-Geneva team of United Nations Environment Program (United Nations Environment Programme). Where it is taken for granted that with the 50,000 million tons that we use in a year, a wall 27 meters wide and 27 meters high could be built around the entire planet.

Through this study, it was recognized that sand should be a strategic resource that goes beyond construction, as its environmental function is very important for preserving the environment, in addition to the importance of Need to improve and upgrade dredging systems This resource is extracted from the depths of the sea. in this context, Pasquale Beduzzithe director in charge of the United Nations Environment Programme, stressed in his day that “to achieve sustainable development, we have to radically change the way we produce, build and consume products, infrastructure and services. Our sand resources are not infinite and we have to use them intelligently.” Highlighting the fact that control The world’s most extractive resource could avoid a crisis by moving towards a “circular economy”.

effects on construction

Iberinform data is collected within Bank of England You revealed it in the Spanish sector 4,175 companies have been dissolved earmarked for construction, to which another 1224 must be added in bankruptcy. These numbers represent 26% of solutions that have been implemented within the country and it is expected that among these closures, at least 1,700 companies have done so due to the high prices of raw materials.

the National Building Federation (CNC) revealed that nearly 40% of Spanish companies had to cancel or shut down their business due to the impact of raw materials. Specifically, they are talking about 500 businesses add up to €230m in combined losses. The only government solution that was proposed was the Housing Rehabilitation and Urban Renewal Plan, for which a total budget of €6,820 million was allocated thanks to Next Generation European Funds.

So, this situation brings up the conflict we have in it Two problems It is very difficult to deal with it together. On the one hand, international environmental policies are very urgent to reduce the consumption of sand, because it is the second most exploited material in all industries after water; On the other hand, the construction sector thinks of a turbulent future in which the lack of resources to continue its activity causes a very sharp decline in its activity.

Aurora Torres, a postdoctoral researcher at Michigan State University who conducted a study on the global sustainability of the sand exploitation system, recognized that “the traceability of sand in supply chains within the construction sector is very poor. How can we have responsible consumption without tracking and distinguishing between responsible and non-responsible sources of garbage?” responsible?” If sand cannot be traced, then “sustainable sand” cannot be certified.

This statement justifies it The construction sector remains highly dependent of this resource and that the implementation of restrictive policies could cause excessive imbalance within companies that would be directly affected by the regulatory actions of this Article.

The future of the industry

The data provided by the last report of euroconstruct It shows that despite the European growth recorded in this sector by 3.0%, it is expected during 2023 that the construction of new infrastructures will slow down at 0.2%, which increases the supply crisis and the activity crisis.

The outlook for European GDP for 2024 is shown A return of 1.9% compared to current figures. However, construction is one of the sectors that will not experience these booms, as it is estimated that the arrival of a two-year period that would cripple the activities of the industry.

in national terms, Spain is one of the countries with the worst prospects, since Euroconstruct revealed that there is less and less production, despite the fact that demand is still very high. Because of this, growth prospects have moved from 4% in 2022 to a barely noticeable 1.8% in 2025.