Middle East in flames: costs and risks for Ticino businesses
Raw material costs have surged by 30-50% due to the conflict. SSIC Director Bagnovini calls for urgent measures to save construction sites in Ticino.
Contesto
On Monday, April 20, 2026, Nicola Bagnovini, Director of the Swiss Society of Construction Entrepreneurs (SSIC) Ticino, sounded the alarm about the direct consequences of the chaos in the Middle East for the construction and skilled trades sector in the Canton of Ticino. In a statement to laRegione, Bagnovini highlighted that raw materials used in Ticino construction sites are experiencing price hikes 'far exceeding those anticipated in estimates and contracts signed by companies'. According to Bagnovini, the conflict in the Middle East is driving up prices of key materials such as steel, cement, and glass. 'Construction contracts were signed months ago, when costs were still manageable. Today, with raw material prices skyrocketing, companies are facing significant losses on every single site,' explained the SSIC regional director. 'Immediate intervention by cantonal authorities is essential to prevent the sector from collapsing.' ### 📊 The Ticino construction sector on high alert Data collected by SSIC Ticino indicates an average increase of 30% for construction steel and up to 50% for certain types of cement and insulation materials. These unexpected cost surges are severely straining the financial stability of local businesses. 'Many firms have already delayed the launch of new projects or scaled back expansion plans to limit damage,' added Bagnovini. 'Without swift action, we risk site closures and layoffs.' ### Reactions from institutions The Ticino government has not yet provided an official response, but internal sources confirmed that the issue has been brought to the attention of the Directorate for Territory and Economy (DFE). No specific measures have been announced at this stage, though the possibility of introducing tax relief or direct subsidies for...
Dettagli operativi
The construction material crisis in Ticino is not just a matter of corporate balance sheets; it is reshaping the habits and strategies of local businesses. The unexpected cost increases, not accounted for in contracts, are forcing companies to rethink their procurement plans and seek alternative suppliers, often with uncertain outcomes. ### Shifting procurement strategies Ticinese firms are now turning to secondary markets to source materials at more affordable prices. 'Many companies have started importing steel from Turkey or North Africa, but delivery times have lengthened and quality controls have become stricter,' explained a businessman from the Mendrisiotto region. 'Before, a custom order was enough; now, we have to accept standardized products with extended deadlines.' Delays in deliveries are already causing setbacks at ongoing construction sites. 'We have a site in Lugano that risks coming to a halt due to a lack of cement,' recounted a contractor. 'Swiss suppliers cannot guarantee the required quantities, and foreign ones take weeks longer to arrive.' ### Impact on contracts and workers Pre-conflict contracts do not include clauses for price revisions, meaning companies must absorb the surging costs, with profit margins rapidly dwindling. 'In some cases, firms are forced to operate at a loss just to avoid losing the contract,' stated Bagnovini. 'This is an unsustainable situation in the long run.' For cross-border workers, this dynamic translates into reduced job security. Many project-based contracts, common in Ticino's construction sector, may not be renewed when they expire. 'Cross-border workers are often the first to be let go when margins shrink,' pointed out a union representative. 'The risk is that many will decide to seek employment in central...
Punti chiave
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Punti chiave
[{"q":"Which construction materials are most affected by price hikes in Ticino?","a":"According to SSIC Ticino, the materials that have seen the most significant increases are steel (+50%), cement (+49%), glass (+47%), and insulation materials (+52%). These price hikes are causing major difficulties for businesses, which had not factored in such drastic changes in their initial estimates."},{"q":"What can Ticino-based companies do to mitigate the impact?","a":"Companies can renegotiate contracts with clients, explore alternative suppliers (including foreign ones), or take advantage of cantonal incentives. SSIC Ticino recommends opening an immediate dialogue with customers to find shared solutions and avoid halting construction projects."},{"q":"Are cross-border workers at risk of losing their jobs due to this crisis?","a":"Yes, cross-border workers are among the most vulnerable because many construction contracts are project-based or fixed-term. If companies reduce margins or close sites, cross-border workers may not have their contracts renewed when they expire."},{"q":"Will the Ticino government introduce support measures?","a":"No definitive measures have been announced yet, but the Ticino Department of Economic Affairs (DFE) is considering interventions such as tax deductions or direct contributions. Businesses and workers should monitor official updates over the coming months."},{"q":"Where can I find further training courses for the construction sector in Ticino?","a":"SUPSI and USI offer specialized training programs for the construction industry. Cross-border workers with a G permit can access these courses. Further details are available on the IUFFP and Ticino Chamber of Commerce websites."}]
Frequently Asked Questions
- Which construction materials are most affected by price hikes in Ticino?
- According to SSIC Ticino, the materials that have seen the most significant increases are steel (+50%), cement (+49%), glass (+47%), and insulation materials (+52%). These price hikes are causing major difficulties for businesses, which had not factored in such drastic changes in their initial estimates.
- What can Ticino-based companies do to mitigate the impact?
- Companies can renegotiate contracts with clients, explore alternative suppliers (including foreign ones), or take advantage of cantonal incentives. SSIC Ticino recommends opening an immediate dialogue with customers to find shared solutions and avoid halting construction projects.
- Are cross-border workers at risk of losing their jobs due to this crisis?
- Yes, cross-border workers are among the most vulnerable because many construction contracts are project-based or fixed-term. If companies reduce margins or close sites, cross-border workers may not have their contracts renewed when they expire.
- Will the Ticino government introduce support measures?
- No definitive measures have been announced yet, but the Ticino Department of Economic Affairs (DFE) is considering interventions such as tax deductions or direct contributions. Businesses and workers should monitor official updates over the coming months.
- Where can I find further training courses for the construction sector in Ticino?
- SUPSI and USI offer specialized training programs for the construction industry. Cross-border workers with a G permit can access these courses. Further details are available on the IUFFP and Ticino Chamber of Commerce websites.