Construction companies facing more bankruptcies and restructuring

Image : Shutterstock

Although the demand for construction services will remain strong, the liquidity of construction companies will continue to deteriorate, and an increasing number of them will have problems with debt due to rising costs, said Coface chief economist in Central and Eastern Europe Grzegorz Sielewicz.

He stressed that the investment recovery in Poland, which began in 2017, is still underway, and the demand for construction services continues to grow. In the first five months of this year, construction and assembly production increased by 24 percent y/y. However, the liquidity of the construction industry illustrates quite a high risk. In the first half of 2018, bankruptcies of construction companies increased by 18 percent.

Coface insures domestic and export receivables, offers financing through factoring as well as trade reports on companies from around the world.

 

Pin It