construction, slovak construction market, residential, nonresidential, civil engineering construction, building materials, building machinery
Construction in Slovakia set to resume growth
Over the past two years, Slovak construction has been lacerated by the economic crisis. The reduction in purchasing power, the low level of business confidence, high unemployment and a scarcity of capital discouraged construction projects in the country in 2009 and 2010.
by PMR Publications Thursday, March 24, 2011
With the exception of civil engineering, which was more resilient to the crisis because of the continuation of a number of large transport infrastructure projects, the output of all subgroups of the construction industry was adversely affected in 2009 and 2010. Overall, there was a reduction in construction output in Slovakia in both years, with almost €1bn being lost between 2008 and 2011. Non-residential construction remained the dominant force on the Slovak construction industry, accounting for approximately 48% of total Slovak construction output in 2010.
There was also a reduction in the number of employees in the Slovak construction industry in 2010, after five years of constant growth. Wages were not, however, substantially affected. After a significant slowdown in 2009, salaries in the construction industry were increased by more than 5% in 2010.
Road construction is likely to remain one of the main drivers which might help the country’s construction industry to stop its decline in 2011 and resume growth in the following years. At the same time, there is a promising list of projects on both the residential and non-residential markets. Many of them are expected to be delivered at least in part in 2011, and this would boost construction output.
The main opportunities for the Slovak construction industry in the next few years are expected to be the following:
the regrouping of the construction industry, prompted by the crisis, which is helping the industry to rid itself of companies which are weak in the areas of finance, human resources and technology.
PMR Corporate is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern European countries as well as other emerging markets. PMR's key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). Being present on the market since 1995, employing highly skilled staff, offering high international standards in projects and publications, providing one of most frequently visited and top-ranked websites, PMR is one of the largest companies of its type in the region.
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