Construction industry out of the woods - Deloitte

After several years of recession and a great number of bankruptcies, the construction business is finally on the mend. The nine largest WSE-listed construction companies saw a revenue increase by 6 percent year-on-year. In total they recorded PLN 7.2 billion in H1 2014, against PLN 6.8 billion in the corresponding period of last year. The new EU perspective and the planned infrastructure investments (Poland will invest some PLN 500 billion in infrastructure by 2020) create major opportunities for construction firm, researchers from Deloitte wrote in a recent report. “A 6 percent revenue increase does not mean a significant improvement for the entire industry. However, in combination with the growing construction and assembly production by 7.3 percent, it indicates that the worst part of the crisis for the sector is likely behind us,” said Maciej Krokosiński, manager at the Auditing Department of Deloitte. “The recent years saw a slew of construction firms going bankrupt. While bankruptcies still do occur, their number fell by 21 percent in the first half of the year compared to the same time frame of last year. We can start being cautiously optimistic,” he added.