The current situation in the construction sector is challenging for many entities, including the construction chemicals industry. The latest analysis from The Central Statistical Office indicates a 9% fall in construction and assembly production in September 2024, compared with the previous year. This significant downward trend has been visible for some time and contradicts earlier forecasts that turned out to be inaccurate – emphasizes Sławomir Majchrowski, President of the Selena Group.
This reflects a bad climate in the industry, maintained by high inflation, high interest rates and credit costs, lack of progress in the “Start-up” scheme, as well as an unstable international situation, which also affects our industry.
The next quarters will depend on the above-mentioned factors, therefore, from this perspective, the economic forecasts for the upcoming 2025 should be cautious. Emergence from the slowdown we observe will require time and a flexible approach to management by businesses that includes several different scenarios. In the current situation, a suitable future development for the company can only be ensured by proper adjustment of actions to the rapidly changing market conditions and caution.
Speaking about the future of the industry, we must not forget about the finance minister’s declaration about the planned acceleration in releasing funds from the National Recovery Plan (NRP). This can be significant for our sector, especially in the context of infrastructure. The budget for 2025 planned almost PLN 52.18 billion in a targeted reserve for implementing the NRP. The finance ministry announced that next year the inflow of funds from the National Recovery Plan will increase GDP growth by about 0.7 – 0.8 percentage points. We speak of a rise in GDP of 3.9% year on year. However, these are still assumptions – not insignificant to the construction sector – so we must continuously stay observant and react appropriately to the evolving situation.
Original blog post, “Construction in Stagnation,” first appeared on CEO Magazine.
Source: https://ceo.com.pl/budownictwo-w-stagnacji-78136
