Czech construction sector sees solid growth in 2015
The Czech construction sector, one of the biggest victims of the economic downturn, is now showing solid prospects of growth for this year with the across the board revival expected to continue into 2016. Growth will, however, bring some of its own problems.
Growth across the sector this year is expected to reach 4.0% after a cautious 2.3% upturn in 2014. Expectations are that the upward trend will continue into 2016, albeit at a slightly slower pace of 3.6, according to the latest quarterly evaluation released this week by the CEEC consultancy.
Around a fifth of companies are expecting even stronger growth for this year of between 5% and 10%, the survey adds.
Those figures represent a sharp contrast to the deep recession suffered for five successive years from 2009. The market contracted by 7.4% alone in 2009 and by 6.7% as recently as 2013.
Bosses in the building sector say that many office projects that were mothballed during the long recession are now being dusted down and revived, projects for flat construction in cities and towns have already perked up in the last couple of years, and industrial projects are going forward, they add.
Recruitment is now expected to pick up with four out of 10 companies surveyed saying they will take on more workers this year. The construction sector is reckoned to have shed around 50,000 jobs during the five year long downturn.
Problems are also seen continuing with the way in which public tenders are staged. Smaller contracts do not have to be put out to public tender with the result that they can often proceed quicker but with the disadvantage, for some companies, that they are not even aware that they are taking place and do not take part. Conditions attached to competitive public tenders are unrealistic meaning that no one wants to take part and they have to be repeated, slowing down the whole process, other companies complain.