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ANALISYS: Positive estimates regarding the international corporations activity
English Section Publicat de Ovidiu Stefanescu 19 Iun 2015 14:18
The first months of 2015 are marked by favorable conditions in the construction sector development, the specialized companies announcing big increases of orders, as seen in the financial reports for the previous year. Managers of large international constructions companies aims at quantitative increase in sales, increased budgets for investment in R&D and further implementation of projects to increase the business efficiency and cost controlling. Important funds will be allocated in future for launching programs designated to optimal thermal rehabilitation of buildings in Europe, this activity being able to attract investments of over 100 million euro per year (from public and private funds). Revenues in the period January-March 2015 were affected by climatic conditions in most European countries, very few companies reporting increases of over 10% of businesses. A good example is the roofing market. After a challenging year 2013, the sector saw a drop in demand in 2014, with Eastern European markets being particularly affected. Poland (-4.4%) and the Czech Republic (-6.9%) have both suffered a stronger decline in value, while the Austrian market (-2.2%) also declined. Northern Europe finds itself stagnating (-0.3%). However, Germany (+3.8%) has managed good growth, according to the most recent study by Interconnection that covers nine regions. Competition is increasing, which is reflected in the growth of market concentration. According to amount of sales, Austria has the highest index by this point of view with the top 10 companies comprising 84.2% of the market. Germany follows with a market concentration of 80.0%, which has remained stable. However, these numbers should not obscure the fact that there have been major shifts in shares between manufacturers. The further development is mainly dependent on innovation and above all on the sales strength of specialized companies. Many companies are currently pursuing cost-cutting and restructuring measures in order to counteract the shrinking margins. Although the prices have increased due to higher production costs, many builders in the non-residential construction sector in Eastern Europe prefer to use less expensive materials when installing roofs on non-residential buildings.
 
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