Iran's conflict is hitting hard with construction and non-metallic industry

The conflict in Iran and, in general, the instability of the international geopolitical context have caused great concern among companies, according to a study by the Guipuzcoana business association Adegi, 29.6% of companies believe that the situation has a high or very high impact on their activity, while another 41.5% say that the impact is moderate.

However, the impact is not the same in all sectors, with construction being one of the worst hit: 78% of companies in this sector report a high or very high impact of the conflict on their activity.

Non-metallic industry, particularly hit.

In the industrial sector, 34% of companies highlight the high incidence, while in some subsectors the data are even more serious, such as the non-metallic industry, where 75% of companies say that they have been severely affected by the situation.

The service sector, for its part, has shown greater resilience: only 15.5% of companies report a high or very high impact.

According to Adegi's report, the war affects the activity of companies through four main factors: firstly, the increase in the cost of raw materials and supplies, which affects 60.5% of companies, and the impact on construction, which affects all companies.

Secondly, marketuncertainty   affects 44% of companies, and thirdly, rising energy costs affect 39.5%.

The fourth major factor is demand : 34.5% of companies have already noticed a decline or change in customer demand.

In addition to direct costs, there are other consequences: 24% of companies have supply problems; 19% mention difficulties related to international transport; and 18% have had to postpone or cancel investment projects; to a lesser extent, they also highlight increased financing costs and financial instability.