Building their hopes for the future

Construction companies in Poland see their future as bright and promising, according to a report on development forecasts for 2005-2008 by PMR Publications. More than half of those surveyed believe their situation will improve in the next 12 months, against only nine percent claiming that it will worsen.

Entrepreneurs in the construction sector are most optimistic about construction and assembly output (65 percent) and cement production (64 percent). Their spirits, however, are not that high when it comes to employment and wage levels in the sector.

According to the research, constructors have no reason to complain about their financial situation. Some 61 percent of them find their financial condition good. More than half admitted that their position has improved on last year and predict that at the end of 2005 it will be better than in the same period of 2004.

Poland's joining the EU was a crucial factor for the industry's well being, especially as it enabled the companies to move their operations abroad. Some 57 percent of the Polish firms surveyed by PMR are active in other countries, with 61 percent of them only in the EU markets.

"Long lasting relations with customers" was the reason given by 76 percent of those surveyed for their success, followed by such indicators as diversification of operations and lasting relations with subcontractors. 

Still, the positive signals from the construction business are accompanied by entrepreneurs' fears and complaints about high taxes and labor costs (59 percent), payment bottlenecks (56 percent), and unstable laws (46 percent).

AB