Middle East in flames: costs and risks for Ticino businesses

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.'

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 construction companies is being considered. 'We are monitoring the situation on a daily basis,' stated a DFE spokesperson. 'We will assess the requests from industry associations to determine the best course of action.'

⚠️ Impact on cross-border workers

For cross-border workers in the Ticino construction and skilled trades sector, the situation is becoming even more challenging. Many project-based or fixed-term contracts are at risk of being renegotiated downward or, in the worst cases, not renewed. 'Cross-border workers often depend on contracts that now risk falling through,' emphasized Bagnovini. 'This could lead to increased sector unemployment or migration to other Swiss cantons.'

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.'

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 Switzerland or other cantons, where demand may be more stable.'

Comparison with the pre-crisis situation

Before the conflict in the Middle East, Ticino's construction sector was experiencing steady growth, driven by both public and private investments. Raw material prices were stable, and quotes were calculated with safety margins. Today, however, companies are grappling with unprecedented volatility.

📊 Comparative table: before and after the crisis

These figures, provided by the Ticino Chamber of Commerce, highlight how price hikes have exceeded all expectations. 'Companies that had budgeted for a 10% increase are now facing additional costs of 40-50%,' commented Bagnovini. 'This makes it nearly impossible to stick to initial budgets.'

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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."

Step 3: Monitor cantonal benefits

The Ticino Government is considering support measures for the sector, but at the moment no definitive solutions have been announced. "Businesses should follow the updates of the DFE and the Ticino Chamber of Commerce," a cantonal official advised. "Tax deductions or direct contributions could be introduced for the most affected construction sites."

For frontier workers, the benefits could include subsidies for vocational training or incentives for job stabilisation. "It is important to stay informed about the calls that will be published in the coming months," said a representative of the DFE.

Step 4: Evaluate training and retraining

In a rapidly changing job market, lifelong learning can make a difference. "Companies that invest in professional development for employees could access public funding," Bagnovini explained. "For border workers, refresher courses on new materials or sustainable construction techniques can increase competitiveness".

The SUPSI and USI offer specific training courses for the construction sector. "Those interested can consult the catalogue of courses on the website of the University Institute of Vocational Training (IUFFP)", added a spokesperson for USI. "Some courses are also accessible to border workers with a G permit".

Step 5: Useful contacts for companies and workers

• Swiss Society of Manufacturers (SSIC) Ticino: ssic-ticino.ch
• Ticino Chamber of Commerce : camcomt.ch
• Border competence centre SUPSI: frontalieri-supsi.ch
• DFE Ticino – Directorate of Territory and Economy: dfe.ti.ch
• SUVA – Accident insurance: suva.ch

Deadlines to remember

• By the end of May 2026: Companies must submit documentation for any cantonal benefits (date not yet specified).
• By June 2026: Evaluation of requests by the DFE (date not yet specified).
• September 2026: Deadline for the presentation of the annual financial statements of construction companies (ordinary term, not linked to the crisis).

What happens if you don't act?

• Closure of construction sites: Delays in supplies and additional costs could force companies to suspend work.
• Layoffs: Loss-making companies may reduce staff, including frontier workers.
• Migration of workers: Border workers could look for opportunities in other Swiss cantons, where the market is more stable.

Key 📊 data to be monitored in the coming months:

• Evolution of steel and cement prices (weekly updates available on the website of the Ticino Chamber of Commerce).
• Number of construction sites started and suspended in Ticino (data USTAT).
• Unemployment rate in the construction sector (data SECO).

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Source: laregione.ch