Survey: Revenues of design firms will drop by 7.6 pct year-on-year

Prague – Revenues of design companies will decrease this year by 7.6 percent year-on-year due to measures against the spread of coronavirus, and by 1.3 percent next year. This follows from the current survey conducted by CEEC Research among 65 design companies. Just in mid-February, they were expecting a growth of 3.2 percent this year and two percent next year.

"Companies are struggling with canceled or prolonged existing contracts, and at the same time, they are facing the fact that many of their business meetings have been canceled in connection with government measures. This, of course, is also reflected in the companies' expectations regarding market development and revenues," said Michal Vacek, director of CEEC Research. According to him, estimates may shift in both directions, depending on how long the measures will last. "It will also be important whether the government measures to support businesses have a positive impact," Vacek added.

Somewhat more optimistic are the designers who primarily focus on civil engineering, specifically the construction of apartments, offices, or industrial halls and warehouses. They expect a decline of 7.1 percent this year, with a slight growth of 0.2 percent next year.

Companies specializing mainly in engineering construction, particularly transport infrastructure, expect an average decline of 8.1 percent this year and three percent next year.

According to the Czech Statistical Office, construction increased by 2.7 percent year-on-year last year. Civil engineering, primarily the construction of apartments, offices, or industrial halls and warehouses, grew by 2.2 percent. Engineering construction, largely consisting of transport infrastructure development, increased by 4.1 percent. The year before last, construction as a whole increased by 9.2 percent, the highest since 2003.