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New Market Report: Construction in Poland - Key Trends and Opportunities to 2016

Fast Market Research recommends "Construction in Poland - Key Trends and Opportunities to 2016" from Timetric, now available

 
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Boston, MA -- (SBWIRE) -- 01/11/2013 -- The Polish economy is expected to grow by 2.7% in 2012, the slowest growth since 2009. The government reduced its forecast for 2013 from 2.9% to 2.2%, while analysts predict growth as low as 1.5%. The eurozone accounts for more than half of Poland's exports, and since this region is facing a debt crisis, companies and consumers have cut down on spending. A large number of construction companies that were involved in infrastructure construction related to UEFA Euro 2012 now find themselves in financial distress as an unexpected increase in prices of raw materials left their contracts unprofitable. Over 100 companies filed for bankruptcy this year, including one of Poland's biggest construction companies, PBG. This is likely to affect the growth of the overall construction industry, particularly the infrastructure market. The construction industry contributed 7.0% to Poland's economy in 2010 and with the industry's growth forecasted to decelerate, the effects will also be felt on the total economy.

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Key Highlights

- Infrastructure construction was the largest construction market, with a 46.2% share of the industry's value. The market valued PLN148.0 billion (US$50.2 billion) in 2011, after recording a CAGR of 9.54% in the review period. Infrastructure construction was driven by the need to improve the country's infrastructure before UEFA Euro 2012. Funds were provided by the European Union.
- A large number of construction companies that were involved in infrastructure construction related to UEFA Euro 2012 now find themselves in financial distress as an unexpected increase in prices of raw materials left their contracts unprofitable. Over 100 companies filed for bankruptcy this year, including one of Poland's biggest construction companies, PBG. This is likely to affect the growth of the overall construction industry, particularly the infrastructure market.
- Commercial construction was the fastest-growing market in the industry and valued PLN52.6 billion (US$17.8 billion) in 2011 after recording a CAGR of 15.06% during the review period. Rising unemployment rates, low wage growth and a weakened economic outlook are expected to result in cautious consumer spending which will lead to slower growth in the retail buildings category over the forecast period. The office buildings category, however, will be in high demand as companies looking for cost reductions move to, or are expanding their operations, in Poland.
- Four years of a difficult global economic environment has started to affect the Polish economy. Poland's budget deficit stood at 5.1% of GDP in 2010. The country needs to bring the deficit under the EU limit of 3% in order to avoid cuts in EU grants. As Poland tries to manage the deficit, further spending cuts may restrict and affect growth in all construction markets in the country.

Companies Mentioned in this Report: Mostostal Warszawa SA, Polimex-Mostostal SA, Budimex SA, Hydrobudowa Polska SA, Erbud SA

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