Construction companies expect growth in construction even in 2008

Prague - Companies operating in the Czech construction industry expect that this sector will grow not only this year but also in 2008. In the future, companies anticipate an increase in their sales and investments in technologies. Most of them are also in favor of the complete opening of the market within the EU, which would help them in their further development. This follows from a study of the Czech construction industry for 2007 by the consulting company KPMG Czech Republic, in which 310 companies participated.
   This year, more than four-fifths of companies predict their development. Better results in their sales compared to 2006 are predicted this year by 87 percent of companies.
   Companies would, however, welcome less complex legislation in the sector, more transparency, better access to EU subsidies and support, and faster removal of barriers within the EU. Furthermore, construction companies complain about insufficient demand and a lack of experienced workforce.
   According to the survey, construction companies most often acquire their contracts based on long-term contacts or direct demand from customers, which indicates a certain inflexibility of the entire system for acquiring contracts. Less than half of the companies use tenders.
   Thirty percent of construction companies spent over 50 million CZK on building materials in 2006, 23 percent were in the range of five to 19.9 million CZK, and 14 percent purchased materials for 20 to 49.9 million CZK.
   Two-thirds of companies would welcome the complete opening of the EU market, as this step would benefit their business. Companies view the possibility of expanding their business beyond the borders of the Czech Republic as a major positive. On the other hand, Czech companies are not pleased with the outflow of experienced workforce abroad.
   According to data from the Czech Statistical Office, construction has been growing continuously since 2000. Last year it grew by 6.6 percent, the fastest growth was in 2004 at 9.7 percent. In the first half of this year, the sector improved by 12.7 percent, although in June it declined for the first time.