A difficult time for the construction industry

The construction industry continues to experience high demand. The problem is large increases in the prices of raw materials and commodities, as well as their shortages.

As a result, some construction entrepreneurs are worried about the profitability of their business. Paweł Kisiel, president of the Atlas Group, says that prices of raw materials used for production of construction materials in some cases have increased even by 100 percent. Producers of construction materials recorded decreases in profitability of several to a dozen or so percent. Costs and shortages also negatively affect the profits of contractors. Leszek Gołąbiecki, president of Unibep, assures that cost control and optimization allows the company to minimize the impact of negative market factors. Thanks to that it achieves profitability on the level consistent with assumptions.

Smaller companies are in a worse situation. Grzegorz Tymoszewski, president of SWE, explains that the final amounts of the majority of large projects were negotiated six months or even a year ago, when the market situation was completely different. As a result, many execution contracts may have fallen below the profitability limit. This may lead to bankruptcy of some companies.

Source: https://biznes.gazetaprawna.pl/artykuly/8297549,budowlanka-wchodzi-w-trudny-okres.html