Holcim AG

The Swiss stock market ended lower on Thursday, with the benchmark SMI losing 46.96 points or 0.37% to close at 12,553.19. Rising inflation and a surge in coronavirus cases across several countries weighed on sentiment, while data showing a 1.5% monthly drop in Swiss exports during October added to the negative mood. Among major decliners, Logitech fell 2.46% and Holcim dropped 2.33%, while Credit Suisse and UBS Group both shed about 1.75%. On the upside, Sika climbed 2.2% and Givaudan gained 1.26%. The trade surplus widened to CHF 4.409 billion in October from CHF 4.328 billion in September, and watch exports rose 4.8% year-on-year.

Holcim CEO Miljan Gutovic has warned that labor shortages could complicate Europe's construction recovery, even as signs of a rebound begin to emerge. Gutovic said worker bottlenecks are affecting the industry broadly, with pressure especially visible in Europe and Australia. Saint-Gobain CEO Benoit Bazin echoed that view, noting that the staffing constraints already slowing data center construction in North America are now moving into Europe. The issue could become more important as the region still needs around 10 million new homes, while builders struggle to find enough workers willing to handle physically demanding outdoor jobs. Gutovic said some markets may increasingly depend on labor from South-East Asia because local hiring is becoming difficult, and the shortage is also opening the door for Chinese contractors, which are winning major industrial projects by offering both equipment supply and on-site installation in one package. Holcim has already hired a Chinese contractor for the overhaul of its Obourg cement plant in Belgium, which is being modernized into one of Europe's first near-zero emissions cement facilities. Gutovic still sees a possible residential construction recovery in Europe as soon as the second half of this year, helped by rising building permits in Germany, while Saint-Gobain also pointed to improvement in France. Holcim's Xella acquisition, modular walling systems, and AI platform could help reduce on-site labor needs, predict failures, improve operations, and lower logistics costs.