Rising costs push small construction firms in Girona to the brink

Industry leaders warn of shrinking profit margins and predict further increases in local housing prices.

Generic image of construction materials at a building site.
IA

Generic image of construction materials at a building site.

The Unió d'Empresaris de la Construcció de Girona has warned that small and medium-sized construction firms in the region are struggling to remain profitable amid soaring operational expenses.

According to Esteve Freixas, president of the local employers' association, labor costs have risen by 18.8% since June 2022. Currently, the hourly rate for a bricklayer in Girona exceeds 28 euros, leaving many small businesses with almost no financial cushion.

"Small business owners are almost losing money; if other sectors worked with these margins, they would have closed."

Esteve Freixas · President of the Girona Construction Employers' Union
The industry also faces a significant labor shortage. Freixas criticized the lack of specialized vocational training in the province and called for legal changes to allow 16-year-olds to enter construction sites to ensure a future workforce for the aging sector.