The Romanian construction market will maintain its upward trend in the coming period due to several factors such as:
- the expected increase in the rate of European funds absorption
- the guarantees granted by the First House program, 50% for new homes and 40% for those older than 5 years
- the need for road infrastructure development
- reducing bureaucracy and modernisation of access to authorities via online
According to Eastern European Construction Forecasting Association (EECFA), Romania’s total construction output growth forecast for 2016 is 3.7% due the more optimistic indicators in the residential segment, the better performance in industrial and logistical construction, and finally, the growth in activity in road construction.
2017 is anticipated to register a growth of 5.2%. For 2018, an expansion of 8.6% is awaited now in the overall construction in Romania, mainly driven by residential construction exceeding growth rates of 10%. The reasons comprise historically low mortgage rates, favourable government policies and a market attracting more speculative development.
According to the Romanian Association of Expanded Polystyrene Manufacturers, the Romanian market of expanded polystyrene / styrofoam, evaluated by specialists at over 100 million EUR, will continue to grow in 2017 given the expected growth of the construction sector and the need to intensify the national program for thermal rehabilitation. However, the peak of the growing trend is expected in 2-3 years' time, mainly due to the implementation of energy efficiency legislation in building and construction. Currently, members of the Association are Arcon, Austrotherm, Congips, EPS Thermopor, Euroconf Impex, Firos, Hirsh Porozell, Isopor, Masterplast, Mecatronics, Mindo, Onebrand and Swisspor.
Depaco, part of Wetterbest, with activities in the production and import of metal roofing systems and components, has closed 2016 with a turnover of about 28.3 million EUR, up 20% compared to 2015. For 2017, the company estimates an increase of about 15% compared to 2016. According to the company's representatives, the Romanian metal roofing market will have an optimal evolution in 2017 in line with the general trend of the economy, meaning an increase of about 3% -4% from the level in 2016. Also it was observed an increase in the demand for higher priced products which is expected to continue.
German group Henkel, which in Romania registered an annual turnover of about 140 million EUR, expects to register an annual organic growth of between 2% and 4% by 2020.
According to representatives of Sika Romania, one of the major players in the local chemical construction materials market, in recent years the Romanians have shown a growing interest for dedicated waterproofing products, understanding their importance and especially the need for choice of a high quality solution to avoid possible further problems.
Sika Romania, a subsidiary of the Swiss corporation, was established in 2002. In June 2008, they inaugurated the first Sika production unit in Romania, the additives factory in Brasov. In addition, Sika inaugurated in 2014 the second factory in Romania, in the Cluj county, where they produce special mortars, as well as mortars used as adhesives.
As for the Romanian market of insulating joinery, 2016 brought a substantial annual increase, of between 15% to 25% for some Romanian manufacturers. For 2017, the representatives of Dr. Hahn estimate a growth rate of 10%. The following 2-3 years they expect annual growth rates between 4.5% and 5% in turnover.
Temad Group recorded in 2016, an increase of 7% of the total turnover, compared to 2015. For 2017 the management aims to achieve revenues of 33.5 million EUR reaching 40 million EUR by 2020. Sales of insulating joinery products registered an upward trend, reaching an increase between 6% and 7% with a similar trend expected for the next five years.
Sources: Agenda Constructiilor, the companies, Business Review, ZF, the associations, EECFA
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