Government and producers try to mitigate high construction costs

Santo Domingo, DR.

Among the multiple effects that the Covid-19 pandemic has generated in the international economy is the pressure towards the increase of raw materials and inputs used in the manufacture of construction materials, which has caused the increase in the cost of materials countries. The Dominican Republic is no exception to this global situation.

In this context and to find alternatives to mitigate the effects of the increases in the most vulnerable segments of the population, the Ministry of Industry and Commerce and Mipymes has led working meetings with the leading manufacturers of construction materials.

The purpose of these meetings lies in the search for cooperation alternatives, both for the country’s sound economic development and to support the development plans of the housing sector, declared as a priority by President Luis Abinader. At the same time guaranteeing the sustainability and competitiveness of the construction industry, of which the production sector is an integral part.

Among the alternatives is to grant preferential commercial conditions to low-cost housing projects under development nationwide. The authorities will identify through a proper classification and certification as beneficiaries of this agreement.

Companies

The companies producing construction materials individually and based on their characteristics, commercialization processes, and manufactured products will define the conditions and cooperation procedures, guaranteeing that the measures will directly impact the citizens acquiring this type of housing without causing distortions in the market.

He indicates that despite the significant challenges of the environment, the manufacturers of construction materials have been accompanying and responding to the demand generated by the construction of civil works and housing in general, investing heavily in initiatives that support productivity and efficiency.

All this, he says, reduces the impact of the increase in their production costs and makes great efforts to safeguard employment, productivity, tax contributions, and exports.

Transitory Contingency

Likewise, the document indicates that this economic contingency is expected to be transitory, taking into account the great efforts being made by the Government to guarantee a healthy and sustainable economy, as well as the commitment of the national production sector to maintain stable and sustainable price levels, since this is the optimal way to guarantee the healthy flow of investments in the construction sector and in the country in general, the document explains.