Despite a turnover of 1.6 billion euros in 2021 and a net profit of 52.4 million, Dura Vermeer argues that the war in Ukraine and the sanctions against Russia make price increases inevitable. At the presentation of the annual figures at the head office opposite Rotterdam The Hague Airport, financial director Lowick Barg noted that Dura Vermeer already had to pay the ‘top price’ for raw materials such as aluminium, steel, nickel, wood and copper. ‘We want to focus on timber frame construction, but that is currently unaffordable. Starting new projects is difficult.’
With an order book for 2022 of 2.8 billion euros, Dura Vermeer is forced to look for alternative materials. Job Dura, chairman of the board of directors of the 167-year-old family business: ‘Can you replace materials or mainly adapt the design of projects? It has become a puzzle.’ Barg: ‘The war in Ukraine also entails major economic uncertainties.’ Dura: ‘And what about inflation and interest rates? That mainly affects the housing market.’
Dura Vermeer’s Construction and Property division grew from 810 million euros in 2020 to 946 million euros in 2021, with more homes being completed (3,420). But growth threatens to stagnate. Dura: ‘A lack of affordable locations, delaying construction procedures and high construction prices limit the speed with which we can build. It can lead to projects being postponed, because we can’t figure it out in terms of price.’
‘Huge bump’
Turnover in the Infrastructure division increased to 663 million euros in 2021. Dura calls the nitrogen problem ‘an enormous hurdle’ in realizing its projects in infrastructure and housing. ‘It is time for the government to solve it, eight out of ten new construction infrastructure projects have disappeared. Focus on renovation and replacement as soon as possible, that would help us enormously.’
After the summer, the Council of State will issue a ruling on the widening of the A12/A15 at the Ressen-Oudbroeken junction, which should serve as a guideline for nitrogen rules in construction projects. Dura: ‘New projects are currently not getting permits and in many provinces, housing construction is also being delayed. Our business climate is under pressure. It is absolutely unclear what is possible and what is not.’
livestock
Sufficient proposals have been made from the business community and the agricultural sector to reduce nitrogen emissions and reduce livestock, says Dura. ‘Put policy on those initiatives, because it also has to be legally resistant. And not lead to a solution that will be shot down by the Council of State again next year. It must also meet European standards.’
Now that the government will only make more money available for the nitrogen problem from next year, Dura Vermeer wants to focus more on replacing the existing infrastructure. Topman Dura refers to the inventory by the association of project developers (Neprom) of housing projects that can now be started.
‘You can start with that tomorrow. The pace must be increased. If we don’t do it now, everything will come to a standstill in 2025. And then you can also start with area development for the longer term. We must quickly look for affordable land, because on average it takes at least six to seven years to prepare urban locations for construction.’
The installation of new municipal councils also leads to delays, says Dura. As an example, he mentions a project in Rotterdam that was only completed after six years. ‘We had land that was ready for construction, so we could start immediately from a technical point of view. But there was a new city council and an alderman who made a different distribution of the type of housing. Then you get consultation and objection procedures that also take a long time.’
Official mills
Dura fears the new environmental law will make the official mills even slower. ‘It’s good to have a say, you can object to the smallest things in the Netherlands. We must remain realistic, a new building can simply be built in a city. Municipalities often set additional conditions for sustainability, but it is a challenge for each municipality to meet the standards. That is why we have invested extra in work preparation and the granting of permits.’
Financial director Barg: ‘We have to expand with people who knock on the door at the municipalities.’ Dura: ‘The core is that we have a major social problem, a shortage of affordable and accessible housing.’ Barg: ‘Affordable housing is also getting smaller, we often build houses in inner-city areas that do not fit families with children. The value of the land has to go down.’
Dura argues for an ’emergency legislation’ to break the status quo in the housing market. Otherwise, the government’s target to build 100,000 homes per year will be jeopardized. ‘How much clout does Minister De Jonge have to translate the cabinet’s ambition into higher production? If the monthly costs rise due to higher interest rates and expensive energy, the affordable housing segment for the middle class will become even smaller.’
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