Downward trend on wall-building materials market bottoming out?

2010-07-27

The market for wall-building materials, i.e. products applied by hand to make wall constructions, has endured a tough time over the last few years, according to the PMR Publications report Wall-building materials market in Poland 2010. Development forecasts for 2010-2012.
The segment, that includes bricks and ceramic air bricks, cellular concrete, silicates and ceramsit concrete, reached its peak in 2007. The principal engine of growth was housing construction, which underwent a boom during this period. However, in the second half of 2008, the economy plunged into crisis, which led in turn to a slump on the housing and cubature markets, thereby stifling the wall-building materials market over the last few years. According to estimates made by PMR Publications, in 2009 the wall materials market was worth approximately PLN 1.9bn (€472.6m), which translates into a drop of 10% year on year. By the end of 2010, however, output in the segment should begin to grow, both in value and volume terms.

After a very difficult period between 2008 and 2009 for the wall building materials industry, the coming years look to be a lot more upbeat primarily because of an improved climate in the residential construction sector. Since the beginning of 2010 real estate developers have been launching new investments or announcing plans to initiate additional new projects in 2011-2012. Yet, the key construction market for the sale of wall materials is still the segment of individual investors. Along with the coming of the anticipated revival in the construction industry, the market of wall building materials has the oppourtnity to enter onto a sustained upward path, and it could significanlty bypass its record value of 2007.


Bartlomiej Sosna
Senior Construction Analyst
PMR Publications

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