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.
Context
TL;DR
- Caos Medio Oriente
- Prezzi materiali
- Crisi Ticino
Key facts
- Data: 20 aprile 2026
- Luogo: Canton Ticino
- Persona: Nicola Bagnovini
- Aumento: 30-50% per materiali
- Settore: Costruzione e artigianato
- Conseguenza: Perdite per aziende, rischio chiusure
- Intervento: Richiesta di intervento autorità cantonali
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.'
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Operational details
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.'
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Key points
The crisis in construction materials requires Ticino companies and border crossers to take a series of immediate actions to limit the damage. Here are the concrete steps to follow.
Step 1: Check existing contracts
Companies must carefully re-read the procurement contracts stipulated in recent months. "If there are no price revision clauses, it is essential to open a dialogue with the client to find a shared solution," explained Nicola Bagnovini. "In some cases, it may be necessary to renegotiate the terms or accept an increase in costs, in order not to interrupt the construction site."
For frontier workers, contract verification is just as important. "Those who have a project or fixed-term contract should request a written update on the renewal conditions," a union representative advised. "In case of non-renewal, it is useful to contact the SUPSI Border Competence Centre to evaluate the available options".
Step 2: Look for alternative suppliers
Ticino companies are already exploring new markets to find more affordable materials. "First of all, it is advisable to contact local or Swiss suppliers to check the availability of stock," said one entrepreneur. "If they are not enough, imports from third countries can be assessed, but delivery times and transport costs must be taken into account".
For border workers working as intermediaries between Ticino companies and foreign suppliers, this step is crucial. "Those who have relationships with foreign companies can act as a bridge to accelerate supplies," Bagnovini added. "However, attention must be paid to the quality of the materials and the certificates of conformity required in Switzerland."
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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.