IBC Focus Study: 6 out of 10 builders estimate business increase in 2024

  Six out of ten important builders in Romania estimate a business increase this year, according to IBC Focus study, active in the market monitoring building sites and construction projects in Romania. According to the company, over half of the big constructors faced financial blocking for large projects, and their biggest problems concern labor force.   One out of five builders see a business stagnation and 20% consider they will register income drops at the end of 2024.   The optimism of big constructors is also seen in the hiring intentions of building companies: 62% of managers and entrepreneurs say the number of employees has risen in 2024 compared to 2023.   Builders in Romania are counting especially on public works as growth engine this year: infrastructure – 86%, medical- 40%, equal to works represented by social units and buildings (30%).   In the private area, industrial investments rank second as growth engine – 51%, followed by the retail domain- 18% and the residential one -16%.   Not all is pink in the construction market and there are challenges which must be faced by big builders. Thus, over half og big builders have been faced with financial blocking for large projects. In the last 12 months, delays in construction works were caused by several dactors. Financial blockings are the main cause, representing 56% of problems reported,”said Andrei Spataru, CEO IBC Focus.   Thus, financial problems have seriously affected the companies' capacity pay subcontractors, to purchase essential materials and to maintain the planned work rate.   Two out of three builders consider that competition will grow in the next years. According to available data, ost entrepreneurs anticipate an increase of competition because of new players entering the market, this opinion being expressed by 44.90% of respondents.   Another important factor which contributes to changes in competition dynamics is technological innovation, mentioned by 21.43% of respondents.   For the first time in Romania's history, the number of companies in the construction field exceeds 90,000 companies which shows us that the construction sector is attracting more players. The biggest problems of big constructors concern labor force. The increase of direct costs with labor force is the problem most often indicated by big constructors (69%).   Ranking third, after project delays is education and insufficent training in the construction field.   Thus, 7 out 10 builders declare they continue to have a deficit of specialized labor force. Employing foreign workers is already a pactice often seen in the construction area. However, 45% of big builders prefer to work and still find human resources from Romania exclusively.   The market analysis is made by IBC Focus following quality questionnaires applied to the biggest 100 builders in Romania. The complete picture of the construction market as well as the list with profiles of the most powerful 100 builders in Romania is available on a yearly basis in TOP 100 General Entrepreneurs in constructions year book.  (Photo: https://www.facebook.com/IBCFocus/)