Crisis in Israeli Construction: Industry Sees Sharp Decline

Israel’s construction sector is facing a significant downturn, with activities dropping an average of 55% in January compared to the previous year, the Manufacturers Association of Israel (MAI) said in a statement on Tuesday. A survey conducted among companies within the industry revealed a dramatic decline in sales, with 8% of the companies experiencing a drop of over 75%. Furthermore, around 70% of the companies saw sales decrease by up to 50%, and about 15% reported a sales reduction of up to 75%. MAI President Ron Tomer highlighted the severe implications of these downturns, including the potential closure of production lines for essential materials and layoffs in construction factories. The crisis is attributed to construction stoppages, stagnation in the real estate sector, and a critical shortage of workers, exacerbated by the ongoing conflict with Hamas. Tomer has urged the government to address the crisis by allowing more foreign and Palestinian workers into the industry and establishing a compensation mechanism for affected companies. The survey involved approximately 200 Israeli firms specializing in construction materials such as cement, adhesives, and concrete.