Heijmans has had a good first quarter, but is also feeling the consequences of the war in Ukraine. The construction company is confronted with rising prices and logistical disruptions. ‘There is greater uncertainty’, says Heijmans CEO Ton Hillen.
For the time being, Heijmans seems to have had little trouble with the rising prices. The order book even rose to 2.2 billion euros in the first quarter. ‘Heijmans is actually in good shape,’ explains Heijmans CEO Ton Hillen. “The first quarter figures are robust, but the availability and affordability of certain materials such as reinforcing steel, wood and energy prices have increased. Inflation has also fueled that, so we are more uncertain about the whole year. But we started with a very good basis on the order book, both in quality and the increased quantity.’
Risk
The delivery problems will also cause other pillars to falter, according to Hillen. ‘It means that we can no longer make closed price agreements, it means that we have to agree indexations with our customers, and that we have to include clauses in relation to security of supply, because sometimes we don’t know whether certain materials can also come from certain areas. At the moment we are not yet bothered by construction projects that have come to a standstill, and I do not expect them either, but it does mean greater uncertainty for the customer. And that’s not nice.’
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Hillen does not expect that Heijmans will have to implement price increases in the interim. ‘But we will therefore include indexation agreements or clauses in the security of supply in new offers. We can’t risk that.’
Nitrogen file
Despite the tight labor market and the considerably expanded order book, Hillen does not foresee any problems finding sufficient staff. ‘We are in good shape in terms of staff capacity. Elements that I do consider worrisome in the housing market are the granting of permits and the lack of planning capacity, as well as the nitrogen dossier that continues to muddle through.’
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‘I am very much looking forward to the fact that the cabinet has said that they will monitor for two years. Then you actually say: we will not make a decision during this cabinet term. I do have respect for the Belgian minister, who really makes choices. In my opinion, not making decisions by the cabinet and leaving it to judges is not the right move. Dare to make choices, show decisiveness and make decisions. Make sure that the Netherlands does not come to a standstill. As far as I’m concerned, the time for poop and wet has passed.’
Construction sites
According to Hillen, this also applies to designating construction sites. ‘I have said before that we certainly want to build inner-city, and I think we can solve the housing problem for about fifty percent in inner-city areas. The other fifty percent is needed outside the city, and then you have to make choices about where and how you want to do that.’
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