Varying fortunes in construction sector

2010-01-04



The construction sector did not suffer as badly last year as has had been predicted by market analysts, although the situation varied greatly from sector to sector, according to figures from the Institute for Market Research cited by Pomorski Przeglad Gospodarczy.
In the first three quarters of 2009 construction-assembly output for the branch as a whole was up 4.7% compared with 12 months' previously. Simultaneously, however, output actually dipped 1.3% in the case of building construction, but soared 19.3% in the case of engineering structures, including roads. Between January and September last year employment increased by 5.7% in the construction branch, but shrunk by 0.9% in the enterprise sector. The economic slowdown in 2009 had its biggest impact on residential construction, where both developers and private investors encountering restricted access to bank credit. This triggered a sharp decline in transactions on the real estate market as well as a slump in new housing projects launched by developers. Meanwhile, those sectors which have benefited from EU funding, such as infrastructure construction and public utility buildings, fared much better. The negative trends on the market have been felt especially acutely by small and medium-sized enterprises, which are in difficult financial straits and face stiffening competition. On the other hand, large construction firms are in a much healthier situation and are still able to embark on new investments.

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