The trade association of renovation companies, Andimac, estimates that the paralysis of the sector for the two months that the State of Emergency is expected to last will cause losses of around €3 billion in the area of renovations and refurbishments, after the implementation of the Royal Decree that forced the cessation of all non-essential activities.
The trade association maintains that this segment accounts for 75% of the value of materials in residential construction – including new builds and the renovation of buildings and homes – and more than 40% of the sector in general. Likewise, Andimac maintains that it is the Administration’s responsibility to enforce the Late Payments Act, whose non-compliance would result in a liquidity need for the sector of around €7 billion. In this sense, Andimac points out that “the shutdown of activity, together with the non-payment of a good part of the materials supplied during the last 90 days represents five months of liquidity losses”. Moreover, it warns that thousands of companies will not be able to shoulder that burden, mainly due to their small size.
