According to NRK Nordland, Gøran Kimsaas described the situation as extremely serious, with approximately 600-700 layoffs and dismissals in a short time. The industry is struggling to keep operations going as companies have expensive machinery that is not being used. The war in Europe has driven up costs for diesel, steel, and explosives, while municipalities, state, and counties are not awarding contracts due to high costs. Small and medium-sized projects are being postponed or stopped, leaving many entrepreneurs with empty order books.
Kimsaas noted that Norway has a huge maintenance backlog on its road network, especially on county roads, with a billion-krone backlog for upgrades and rockfall protection. Some roads are already fully planned and need no further investigation. The industry is calling for a crisis package from the government, similar to those during the pandemic and financial crisis. Kimsaas emphasized that the construction industry is part of Norway's emergency preparedness, keeping roads open for essential services. Entrepreneurs lose money on existing snow removal contracts due to high costs, and snow removal preparedness is at great risk if companies disappear. Machine entrepreneurs are also needed during landslides, floods, and extreme weather. Kimsaas stressed that it is not just about business but about societal safety and total preparedness, and it is especially important to keep local entrepreneurs operational.
They have expensive machinery and equipment that just sits there and is not used. So it is being sold off, and several are approaching bankruptcy.
The situation is extremely serious right now. In a short time, we are talking about 600-700 layoffs and dismissals. The industry is struggling to keep the wheels turning.
We are being pressed from all sides now. Prices have almost exploded.
We have a billion-krone backlog on county roads and rockfall protection. There are roads that are already fully planned, so they need no lengthy investigation.
I believe in a typical crisis package similar to what we had during the pandemic and during the financial crisis.
I don't think we should call it keeping artificially alive, because we are part of Norway's preparedness. There are those who keep the roads open when grandma needs to go to the hospital, or fire and ambulance need to get through.
The roads are plowed today on already signed contracts, and our entrepreneurs lose money every time it snows, because things have become so expensive.
Snow removal preparedness is in great danger if companies disappear. What happens then in a serious crisis? Who will plow then?
It is not just business, but societal safety and total preparedness we are talking about.