Construction Industry in Poland

Halmstad University Construction management

Piotr MazurAdam OsińskiPiotr StolarskiPaulina WawrycaŁukasz PiecykPaweł Bilski

Statistics• In industry works 5.500.000 employers, of

which 400.000 in construction industry

Residential 21%Non-residential 34%Other 45%

• Demand for Employees in Construction

• Construction Division

0.00%15.00%30.00%45.00%

• Industry in Gross Domestic Product in 1995-2007y.

EURO 2012

Investments:

- 4 big stadiums- About 100 km of new roads and highways- Hundreds of hotels and gastronomic points- Renovation of airports and railway stations

Stadium in Warsaw

Stadium in Poznań

Roads in 2010

Prognosis for roads in 2012

Housing industry

Housing industry

Housing industryReasons of growth : 2000-2008

◦Overall economic growth◦High increase in credit availability,

lower interest ratesReasons of falling : 2008- …

◦World financial crisis◦Increase of prices (from 2400 zł/m2

to 4000 zł/m2

Housing industry

- In year 2010 : 135 000 apartments finished(15% less than in 2009, 17% less than in 2008)

- In year 2010 : 158 000 apartments started (10% more than in 2009, 15% less than in 2008)

Housing industry

Near future situation-◦High risk of new investitions, uncertain

about supply◦Only return of economical growth will

increase new investitions highly◦State housing policy (Housing for

Families), to increase demand for new investitions

The structure of construction output by type of accomodation

14,9 12,6 10,6

8,9 10,7 12,3

9,6 12,9 9,5

15,315,1

15,6

15,318,4

19,5

3630,3 32,5

0%

20%

40%

60%

80%

100%

2008 2009 2010

Year

Pe

rce

nta

ge

Other buildings of civil and waterengineering

Motorways and expressways

Residential buildings

Office , trade and servicebuildings

Industrial buildings andwarehouses

Other non-residential buildings

The preliminary data can be assessed that over the past two years, the fastest developed industrial buildings and warehouses, which increased market share from 8.9% to 12.3%. Also increased the share of engineering construction, including road - despite the delays and problems with the implementation of spending plans for 2010 and low absorption of EU funds. Although the general opinion is too slow, but the condition of Polish roads is improving steadily.

Industrial and warehouse construction industry

Industrial and warehouse construction industry developed in large part thanks to the interest of foreign investors, treating Poland as an attractive location for manufacturing facilities and logistics centers. Modern warehouse market is dominated by large international players. Until recently, the supply of modern warehouse space centered around Warsaw (over 70% of the total available space of approximately 2 million m2 at the end of 2010). Recently observed change in the trend: in 2010 almost half of new supply was located outside of Warsaw, especially in Silesia and in the vicinity of Wroclaw and Poznan. Recently come to market signals about the boom in the north, near Gdansk. This trend should continue in the future, as indicated already started and planned investments, and large areas reserved for investors in new projects. According to analysts DTZ up to 80% of future investments will be located outside the region of Warsaw.

Leaders of construction market in Poland

Four dominant construction companies:

1. Polimex-Mostostal2. Skanska3. Budimex4. PBG Group

Polimex-Mostostal• General contractor in industrial

construction, general and residential

• A company listed on the Stock Exchange in Warsaw- in the index of the 20 largest companies

• Also operates in foreign market• Only Polish construction

company included in the International Construction Magazine report (sales on billion USD- 1.6)

BudimexMajor investments in

infrastructure construction, residential, environmental and special

A company listed on the Stock Exchange in Warsaw- in the index of the 20 largest companies

Also operates in foreign market

PBG GroupMain contracts:

construction of installations for transmission and storage natural gas, crude oil and fuel, hydraulic engineering , industrial and road constraction

A company listed on the Stock Exchange in Warsaw- in the index of the 20 largest companies

Polish migration

Reasons: - Most of the EU states put limits on the number of migrants, there is no limits of migrants in: Britain, Ireland and Sweden.

- English is spoken as the second language of the many other countries so it is easier for migrants to move to an English-speaking nation

- Polish workers have been able to earn five times more money than in Poland.

-One in five workers in Poland was unemployed in 2004

-Even low-paid work in foreign country is attractive as the average monthly wage in Poland.

Effects:

- According to the last analysis in Poland there is 30% less workers and construction managers than half year ago.

- Difficulty in completing the construction within the time.

Ages of migrants from Poland 2004-06