Ready-mix concrete companies plan to pass on recent wage increases to consumers, with prices set to rise by 5% from January 2025, following a settlement that ended workers’ strike before the holidays.
The price hike of €4 per cubic metre will generate approximately €14 million in additional revenue for concrete companies, based on annual production of 3.5 million cubic metres, industry professionals told philenews.
Construction industry experts claim the price increase significantly exceeds the actual cost of wage rises, which they estimate at around 1.5%. They argue companies will retain the remaining 3.5% as additional profit.
The impact will be felt across both private and public sectors. An average private home will cost an additional €2,000 to build, while major public construction projects requiring large concrete volumes will face substantial cost increases, ultimately paid by taxpayers.
Quarries have also announced price adjustments, raising rates by €1 per tonne, translating to increases of 10-15%.
The Cyprus Chamber of Commerce and Industry (KEBE) noted that price increases vary among companies, with some yet to implement changes.
While acknowledging that some increases are justified by labour costs and raw material prices, KEBE stressed that any price adjustments should remain reasonable without impacting the broader economy.
Some industry professionals have called for government intervention, alleging cartel-like behaviour in the concrete sector.
Construction contractors can claim additional costs from government authorities for public projects, leading to increased public expenditure.
