A study by IBC Focus reveals that 60% of Romania's largest construction firms expect higher turnover in 2024, while 20% foresee stagnation and another 20% anticipate revenue declines. 

Official data show that the construction works volume dropped by 2.5% y/y in January-August, driven by a 23% y/y plunge in the residential segment partly offset by a 7.3% y/y rise in the civil engineering (constructions, utilities), while the non-residential segment contracted slightly by 0.7% y/y on diverging internal dynamics.

Consistent with the official data, public infrastructure projects are viewed by constructors participating in the survey as the primary growth driver, with 86% of builders targeting this sector, followed by medical construction (40%), utilities, and social housing (30% each). Industrial investments lead to private sector growth prospects (51%), with retail (18%) and residential (16%) following.

Hiring intentions reflect industry optimism, with 62% of construction executives reporting workforce growth in 2024. However, the industry faces persistent challenges. Financial blockages, impacting over half of large projects, have slowed progress by limiting cash flow for subcontractors and essential materials. 

"Financial constraints are the main factor behind project delays," said Andrei Spataru, CEO of IBC Focus, adding that competitive pressures are also rising due to market entrants (45% of respondents) and technological innovations (21%), Economica.net reported.

Romania's construction sector has now surpassed 90,000 companies for the first time, indicating increased competition.

Labour shortages remain critical, with 69% of builders citing rising labour costs and 70% reporting a skills deficit. While foreign workers are common, 45% of major firms still prefer Romanian labour. 

The survey was based on responses from the top 100 construction firms in Romania.

iulian@romania-insider.com

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