Construction has contracts and money, but it lacks workers

Zbůch (Plzeň Region) - Czech construction today has no issues with contracts or money due to the ongoing boom, but it lacks workers in both manual and technical professions. Few children are enrolling in apprenticeships, and Slovaks and Ukrainians are leaving the Czech Republic. The expectations that some economists had from the January accession of Romania and Bulgaria to the EU have not materialized. This was stated to ČTK by the director of the Czech Construction Entrepreneurs Association, Miloslav Mašek, as well as Pavel Malinský from the Ministry of Industry. Both described it as a cardinal problem affecting all of Western Europe, and the situation in the Czech Republic will continue to worsen. Additionally, a strong generation of workers aged 55 to 60 is retiring.
"Slovaks, who previously helped us significantly, are returning home, where a construction boom is starting, especially with rising wages," said Mašek. Ukrainians are leaving for Russia, where significant construction activity is currently underway, similar to China. Good Czech craftsmen are working abroad. "Ukrainians and Slovaks, who are very intelligent, are leaving, and Mongolians are heading for Czech construction sites, where there are, among other things, significant language barriers," said Malinský.
According to Mašek, almost no Romanians and Bulgarians have come to the Czech Republic since their accession to the EU in January. Romanians are mass migrating to France and Portugal, while Bulgarians are going to Italy, he added. Poles, who market themselves best, are in England and Belgium.
According to the association, this problem will persist. "Construction trades are not attractive, and parents are unlikely to encourage their children to pursue them," stated Mašek. Yet the average wage in construction exceeds 21,000 crowns, which is slightly above the national average. However, parents still think it's hard labor with a wheelbarrow, added the director. The association intends to popularize the trades with large companies. It wants to demonstrate that children will have work for their entire lives and can work throughout Europe. The association has prepared open house days at selected construction and manufacturing companies. The first will take place on Saturday, October 13, across the Czech Republic.
The association is preparing a new model of apprenticeship education, similar to the French and German systems, where apprentices receive their entire education for free. That means not just the training itself, but also meals, accommodation, books, and supplementary courses. "This general system is being prepared with companies like Skanska and Metrostav, and we will present it to the association's board at the end of June," said Mašek. He will ask the state to make apprenticeship expenses a tax-deductible item since companies are helping the state reduce unemployment. The EU, specifically the European Social Fund, does not provide funds to support apprenticeship education.
"We would need 30,000 apprentices in all traditional professions annually, such as bricklayers, carpenters, and plumbers, but we only have hundreds. About a third are being trained, but most of them do not complete their studies or leave for other fields," said Mašek.
Currently, there are 450,000 people working in the field, of which 300,000 are physically working. "This is our estimate. Statistics only record companies with more than 20 employees, which reported 220,000 individuals," said Mašek. Of the current 300,000 people working on construction sites, one-sixth to one-fifth are foreigners.

Czech construction is expected to improve by at least six percent this year

A minimum growth of six percent in the volume of Czech construction performance over last year's 460 billion crowns is expected this year by the Czech Construction Entrepreneurs Association (SPS) and the Ministry of Industry and Trade. During today's opening of the concrete paving production line in the B&BC Zbůch company, SPS director Miloslav Mašek and Pavel Malinský from the Ministry of Industry and Trade stated this to ČTK.
"So far this year, it looks like more than a six percent increase," added Mašek. Transport construction will again be the driving force. Ground construction, ecological buildings, apartments, and after a long period of stagnation, their renovations are all on the rise, which is a "pleasant observation" according to the association. Residential construction, which accounted for almost a quarter of performance last year, is expected to grow slightly again this year, according to Mašek.
The construction boom is allowing companies and entrepreneurs in the sector to invest heavily and take out loans. "Today, finding contracts or money is not an issue; however, there is a lack of qualified people in manual and technical fields. And it will get even worse," stated SPS regional manager Ján Kapošváry. "Czech companies are doing well. Evidence of this is significant investments like B&BC (which today launched a line worth 100 million crowns)," said Malinský.
"This year we estimate a growth of six to ten percent," he added. According to Malinský, the winter was mild and construction material sellers are experiencing a strong boom. "For example, our major ceramic tile manufacturer Lasselsberger reports sold-out warehouses, and it still faces summer and autumn, meaning project finalizations," he remarked. According to Malinský, the construction boom has been ongoing for six years. Vladimír Tomášek, head of the purely Czech B&BC Zbůch, one of the top five Czech manufacturers of concrete elements, has been feeling the boom for three years. He anticipates stagnation this year.
"All companies are growing; their numbers are increasing, and there is also a slight increase in the number of employees," stated Malinský. For instance, production of concrete and cement elements has risen by nearly one-fifth year-on-year and accounted for almost 40 percent of total construction material production. Last year, this production exceeded 84 billion crowns and grew by nearly 13 percent year-on-year.
The benefits of foreign owners of construction companies and material manufacturers are not only in technology but also in "marketing know-how," which has boosted sales but also caused prices to rise to levels comparable to Western Europe.
According to regional councillor Miroslav Jaroš, the Plzeň Region will begin issuing tenders for drawing nine billion crowns from the Regional Operational Program beginning this autumn. This is similar in other regions. "Most of this money for the seven-year European plan will be investment funds, I would say for construction," he added. The largest sum will be dedicated to transport construction, of which the region has already recommended eight projects.