Vladimír Urbánek (Kurzy.cz)
Macroeconomics  |  January 09, 2013 14:31:44

The recession in the construction industry this year deepens, many companies will not survive the year 2013

In 2013, according to experts, the trend of recession in the construction industry particularly noticeable in the area of residential and public buildings, where we can expect a decrease of 10%. The danger of this decline fro experts especially in the fight to increase the competitive market, which may lead to excessive reduction in prices and subsequent devastation of a number of construction companies. The contrary, the demand grows for construction work related to energy savings.

This year will, according to the recession in the construction industry continues to widen both the preparation and the actual implementation. The crisis has particularly affected the construction of hospitals, schools, restaurants, hotels and social care buildings. This decrease in demand will have, according to experts in a reduction in prices of project and construction works to below break-even. At the same time according to them, it will also reduce investment in projects co-financed by the European Union.

"At present there is a dramatic decrease especially in the public sector, which we consider to be a significant problem. We fear that in the year 2013, this decline even more apparent.Yet such is not the financing of actions co-financed by the European Union. In 2013, the YoY decline in construction work volume of 4.5 to 5%, residential and civil buildings by up to 10%, "said Josef Mitrenga from the Czech Chamber of Certified Engineers and Technicians." In 2013, we expect YoY decline in construction of approximately 10%, mainly in residential and public buildings. The recession will lead to increased rivalry among competitors in the market. This can result in a fall in prices of construction work below the limit of profitability and subsequent destruction of many construction companies, "said Vladimír Svoboda trend, CEO of Interplan-CZ, one of the specialists in the design and preparation of engineering structures.

According to the latest data from the Czech Statistical Office has dropped in the last year of construction output by 4.3%. Building authorities granted by 2.1% less building permits and approximate value fell by more than 4%. Experts attribute the slowdown, especially the continuing lack of private and public procurement. Also sees a risk in new austerity measures of the government to invest in the construction industry.

"The construction industry with a share of around 7% of GDP, one of the most important sectors of the national economy. Since 2008, when it began the global economic crisis, the Czech construction industry has failed by more than twenty percent. A 2013 will not bring her anything new. The decline will continue, "said Miloslav Masek, Managing Director of the Association of Building Entrepreneurs of the Czech Republic."Numbers approved the state budget in the area of investments do not signal any change for the better, "said Masek.

According to experts, the demand in 2013 will grow only in the area of construction work related to energy savings. Will primarily deal with the insulation and reconstruction or installation of new heat sources. "The stagnation of demand applies to most segments of the construction market. We believe, however, that have a positive impact on this area should have a current restore Green Savings program. He will this year focus on investments in energy savings in new construction and renovations, "said Thomas Paták from the Ministry of Industry and Trade.

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Czech Chamber of Authorized Engineers and Technicians

Czech Chamber of Authorized Engineers and Technicians is a public professional organization, which was established in 1992 under Act No. 360/92 Coll. Chamber membership today consists of more than 29,000 certified engineers and technicians who have been granted authorization on the basis of passing the prescribed examinations of professional competence.Act 360/92 Coll. Profession of authorized architects and authorized engineers and technicians active in construction occurred in selected activities in construction to transfer professional responsibilities to individuals: certified architects, engineers, technicians and builders.

Company INTERPLAN-CZ, sro

INTERPLAN-CZ Company was established as a new private business entity operating in

the design and preparation of engineering structures. Shortly after its inception market position

with comprehensive and qualified services provided on projects at home and abroad.

From its inception until the present time, the company has developed a full range of design, engineering and

consultation activities, services covering the entire life cycle of buildings, from the preparation and implementation of post-use and management - facility management.


Association of Building Entrepreneurs of the Czech Republic


Association of Building Entrepreneurs of the Czech Republic is the supreme representative of the Czech construction industry, which guarantees the representation of the field at the highest level. Its importance is all the greater because the Czech Republic is currently no central government authority for resort construction. Part of the program falls under the administration of five ministries: Industry and Trade, Transport, Regional Development, Agriculture and Ministry of Environment. Association defends the legitimate interests of the members and seeks a favorable business environment in legislation and economic policy. Enters into the law-making participation of experts and the comment place new proposals for legislative change.



John Skřivánková
PR & Marketing Manager


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