News from SPECTIS

News

€150bn for nearly thousand large-scale projects in Poland

09 aug 2021

The growth potential of the Polish construction market will remain significant through 2026 on the back of the continuation of ambitious road and railway infrastructure projects, the required power transformation of the Polish economy and the steadily robust performance of the residential construction sector. A vast majority of projects underway or planned to implemented are located in the six most economically advanced regions, which jointly account for two-thirds of the construction market’s value.

170 power and industrial projects worth €56bn to be constructed in Poland

08 aug 2021

The estimated value of over 170 major projects, both ongoing and planned, is €56bn, including €6.6bn (12% of the total amount) represented by ongoing projects, and nearly €50bn being the value of projects in the tender, planning or initial concept stages, according to the findings presented in our report entitled "Power and Industrial Construction in Poland 2021-2026". The sizeable gap between the value of ongoing projects and projects in the planning stage reveals a huge potential for the growth of this branch of the construction industry.

WSE-listed construction companies with strong profit-margin improvement in 2020

11 May 2021

Aggregate revenue reported by nearly 20 construction groups whose stock is listed on the Warsaw Stock Exchange grew by a nominal 4.3% in 2020, which is a scant rise in real terms, given continued increases in the prices of building materials and labour costs. However, the aggregate net profit posted by these companies improved clearly as it grew by almost PLN 0.5bn over the year. Notwithstanding that, net financial performance of the listed construction companies and profit margin figures they report still pale in comparison to results delivered by property developers and suppliers of building materials and construction equipment.

Over 200 railway projects in Poland worth PLN 120bn

13 Apr 2021

The estimated value of over 200 major railway projects, both ongoing and planned, is almost PLN 120bn, including PLN 35bn (30% of the total amount) represented by ongoing projects, and over PLN 80bn being the value of projects in the tender, planning or initial concept stages, according to the findings presented in our report entitled “Railway construction in Poland 2021-2026”. The vast gap between the value of ongoing projects and projects in the planning stage reveals substantial potential for the growth of this branch of the construction industry.

Facade materials market in Poland to reach €900m by 2026

09 mar 2021

Manufacturers of facade products were successful in generating a little over PLN 3.6bn (€800m) in revenue in 2020 in spite of slower activity in the building construction sector, especially in the non-residential segment, according to the findings presented in our latest report entitled "Facades and facade materials in Poland 2021-2026".

Top 3000 construction companies in Poland

25 Feb 2021

At the beginning of 2021 we expanded our database of the largest construction companies in Poland by adding a thousand new firms. Available as an Excel file, the database of construction companies is a useful tool supporting the analysis of the competitive environment in the contracting sector. It also comes in handy when you look for a contracting company or a subcontractor. The database is particularly useful when choosing or screening companies by revenue, profitability, or location. The database presents financial data relating to sales revenue and net profit/loss going as far back as 2010.

Roofing materials market in Poland to reach €1bn by 2025

03 Feb 2021

Manufacturers of roofing products were successful in generating a little over PLN 4bn (€900m) in revenue in 2020 in spite of slower activity in the building construction sector, according to the findings presented in the report released by Spectis entitled "Roofs and roof coverings in Poland 2020-2025".

Polish construction industry likely to make recovery in H2 2021

01 Feb 2021

December turned out to be a good month for construction companies and producers of building materials, according to our latest monthly report “Construction market in Poland – February 2021”. However, the outlook for the construction industry in 2021 remains moderately bleak, mostly because of a high comparison base of Q1 2020. That the second half of the year could see an upturn is yet suggested by higher order books reported by the top 20 construction companies.

Construction market in Poland to shrink 3-5% in 2020

28 Sep 2020

The Polish economy is already past the low point of the short-term economic activity downturn. However, the construction industry is not at this point yet as it responds to economic shocks after a certain time period. This is why the first half of 2021 will be marked by challenges. The market pins its hopes on the new EU financial envelope, but a tangible effect on the investment volume will not become apparent before H2 2021.

Concrete products market in Poland to reach PLN 10bn by 2022

20 aug 2020

Manufacturers of concrete products in Poland will be able to generate a little over PLN 9bn in revenue in 2019 in spite of slower construction activity, according to the findings presented in our latest report "Sector of concrete products in Poland 2020-2025".

€67bn for implementation of 25 construction mega-projects in Poland

13 Jul 2020

There are only four construction projects with a unit value in excess of PLN 3bn (€670m), excl. VAT, currently underway in Poland. The combined value of these projects, commonly referred to as mega-projects, is almost PLN 17bn (€3.8bn), excl. VAT. This is not a lot, given the fact that projects worth a total of nearly PLN 300bn (€67bn) are in the pipeline.

Nearly thousand top projects in Poland worth €120bn

23 Jun 2020

Despite a short-lasting downturn in economic activity caused by the COVID-19 pandemic, the Polish construction industry will continue to exhibit a significant potential for growth right up to 2025. Notably, the outlook for the civil engineering sector has improved compared with the previous projections. A vast majority of projects underway or planned to implemented are located in the six most economically advanced regions, which account for almost 65% of the construction market’s total value.

 

 

Construction confidence in Poland falls to three-year low

02 Apr 2020

March was the twelfth consecutive month to see decreases in confidence in the construction sector. The seasonally-adjusted confidence index dipped into negative territory, and it plunged to a three-year low. Since the March survey does not reflect a completely new economic reality, it is expected that construction confidence will fall dramatically in April.

Labour costs weigh on construction companies in Poland more than ever

06 Feb 2020

Business confidence among Polish construction companies tumbled early this year, with the heaviest burden, as perceived by the enterprises, coming from labour costs and tax levies. Decline in confidence is chiefly due to such factors as an over 15% increase in the minimum wage and a 10% hike in social insurance contributions faced by sole traders operating in the construction industry. On top of that, large construction businesses are required to conduct Employee Capital Schemes (PPK) or the alternative solution of Employee Pensions Schemes (PPE).

40 largest construction companies in Poland post a record PLN 50bn in revenue

18 Dec 2019

The top 40 construction companies operating in Poland posted a record aggregate revenue in 2018, breaking the previous revenue high set in 2011. Besides an improved volume of work, the revenue hike was also largely driven by rising prices of building materials and labour.

Top 30 commercial property developers in Poland report €230m net profit in 2018

19 Nov 2019

The aggregate net profit of the 30 largest commercial property developers in Poland hit an all-time high of PLN 985m (€230m) in 2018, which translated into a net profit margin of 25%. The latest data from the investment transaction market and property developers’ interim financial statements indicate that 2019 can be as good a year as 2018 was for the industry in terms of profitability.

Projects of top 30 property developers in Poland worth nearly €10bn

28 Oct 2019

The total value of 230 office, retail, warehouse and hotel projects, both ongoing and planned, which are conducted by top 30 property developers is estimated at nearly €10bn, according to our latest report "Property developers in Poland 2019-2023".

A record 200,000 new homes completed in Poland

23 Oct 2019

A record number of 200,000 flats and houses were completed in a 12-month period – the highest annual figure recorded since 1989 when Poland’s transition to democracy began – on the back of several years’ upturn in residential construction.

WSE-listed construction companies report negative profitability in Q2 2019

13 Oct 2019

Total revenue reported by more than 20 construction groups listed on the Warsaw Stock Exchange grew by 7.4%, in nominal terms, in Q3 2018-Q2 2019 to almost PLN 25bn (€5.8bn). However, growing revenue figures still do not translate into improved profitability of the construction industry as a whole, which has been in the negative territory for nearly two years. The upturn in the construction sector of the past few years has benefited mostly property developers and, though to a much lesser extent, producers and suppliers of building materials and construction equipment.

Rising prices to push the Polish construction market to new heights in 2020

24 Sep 2019

The value of output generated by the Polish construction industry has reached an all-time high level on the back of several years’ investment upturn, and it is expected to come close to PLN 250bn (€59bn) in 2020. In nominal terms, the market’s value is impressive, but it is less so when one looks at the volumes of construction work being performed and building materials used. A noteworthy fact is that the growth in the market’s value is boosted by rising prices of building materials and higher labour costs.

Strabag vs. PORR – Austrian companies put in bid for runner-up spot in the Polish construction sector

23 Sep 2019

Boosted mainly by large-scale road, railway and tunnel construction projects, the backlog of orders secured by the PORR Group in Poland has grown tremendously since the acquisition of Bilfinger Infrastructure in 2015, and its value topped PLN 6.6bn (€1.55bn) as at the end of Q2 2019. Consequently, the gap between PORR and Strabag, in terms of the current value of orders on hand, has been narrowed considerably to just a single medium-sized contract.

Analysis of construction potential in the 20 largest cities of Poland

14 aug 2019

The latest report from Spectis, "Construction market in Poland 2019-2025 – analysis of the 20 largest cities", shows significant differences among the individual cities in terms of the present stage of the business cycle and the potential through to 2025. These observations refer to both building construction and municipal infrastructure construction segments.

Breakthrough data from the cement market.

05 Jul 2019

According to Spectis calculations, in March 2019, cement sales on the domestic market for the first time in history exceeded the level of 20 million tonnes per year.

€100bn for nearly thousand large-scale projects in Poland

03 Jul 2019

Despite the fact that the Polish construction market is projected to grow at a slower pace in the coming years, investment potential remains considerable for most of the regions. The total value of the 960 largest investment projects underway or planned in Poland is estimated at a staggering PLN 420bn (€100bn), i.e. nearly twice as much as the annual value of the construction market as a whole, according to the findings of our latest report "Construction market in Poland 2019-2025 – an analysis of 16 regions".

Warsaw Stock Exchange-listed construction companies saw slight improvement in profit margins in 2018

08 May 2019

Aggregate revenue reported by more than 20 construction groups whose stock is listed on the Warsaw Stock Exchange grew by a nominal 9.8% in 2018, which is a meagre rise in real terms, given soaring prices of building materials and labour. Net financial performance of the listed construction companies also improved marginally, but the figure still pales in comparison to earnings achieved by property developers and suppliers of building materials and construction equipment.

Polish construction companies upping bid prices to rescue profit margins

03 Apr 2019

Construction companies successfully confronted looming insolvency issues in 2018. However, this does not mean that the risks have been entirely mitigated. Loss-making contracts whose prices were set at the time of increased competition will still be pursued and billed in 2019 and 2020. Nevertheless, there will be fewer of them active, and the backlogs will start to comprise mostly contracts valued conservatively.

The pace of construction prices remain high

27 mar 2019

Low interest rates combined with an investment upturn and labour shortage result in a significant upward pressure on building material prices and labour costs. Given the monetary authorities’ lenient stance and the continued growth in the construction industry, price pressures in the construction market are expected to persist throughout 2019.

Nervous start to the year in the Polish construction sector

04 mar 2019

The Polish construction industry enjoyed a really strong year in 2018 as most of the key performance indicators were climbing the charts of growth throughout the year, but the start to 2019 saw a substantial downturn across practically all market segments. This, however, was due to a high comparison base registered last year.

Small companies drive growth of Polish exports of construction services

21 Jan 2019

Construction and assembly output generated by Polish construction companies in foreign markets has hit an all-time high of €1.55bn, but this is still below the potential of domestic contractors. Importantly, a considerable change to the structure of companies engaged in foreign orders took place in recent years – the centre of gravity has shifted from the biggest construction groups to smaller companies with a specialised focus.

 

Construction companies in Poland show negative profitability for fourth straight quarter

19 Dec 2018

Profitability of 22 construction groups listed on the Warsaw Stock Exchange continued in the negative territory throughout Q3 2018. Moreover, the third quarter of the year was the second consecutive quarter that profitability reported by property developers was on the decline, though it should be noted that their earnings were still fairly decent and at a sound level when compared to contractors. On the other hand, financial results delivered by manufacturers and suppliers of building materials and construction equipment were solid.

PowerChina Group likely to secure PLN 3bn worth of contracts in Poland

14 May 2018

Despite unsuccessful bids to secure contracts for the construction of the Ostroleka Power Plant and the tunnel section of the S3 expressway, members of the PowerChina Group still stand a good chance of winning three orders totalling more than PLN 3bn, incl. VAT, the largest of which is the construction of the Krakow Northern Bypass.

While it is way too soon to say if expanding into the Polish market has been a successful effort, it should already be noted that if the PowerChina Group secures the three contracts, it will actually reach the top 10 of Poland’s contraction companies in terms of the order book value.

Interestingly, the company has set itself the objective of achieving the position of a leading participant of the infrastructure construction market, not only in Poland but also in Europe as a whole.

The value of the construction market in Poland expected to exceed PLN 200bn in 2018 after a record-setting 2017

09 Feb 2018

The ongoing investment upturn, which began several months ago, coupled with excellent performance towards the end of 2017 lifted Polish construction output to new heights.  Output generated by Polish construction industry is expected to further climb in 2018. However, its value as a percentage of GDP is still fairly moderate.