Hungarian Construction Firms Fear Foreign Rivals

Hungarian construction firms may face a challenge in finding customers in the coming period, as investors have become much more cautious due to rising prices of raw materials, raw materials and energy on the one hand, and capacity constraints on the other.

Market Építő Plc. [Construction Plc.] expects construction output to slow in 2023 compared to the previous period, which could be largely driven by a reduction or postponement of government investment. It is of the view that global and local economic problems and increased delivery deadlines will also pose serious challenges for the sector.

The construction firm believes that finding customers and orders will thus also be a challenge in the period ahead, with orders being affected primarily by inflation and capacity constraints.

Hungarian companies are facing the emergence of Turkish and Romanian-Turkish construction companies in the region: to prevent their market penetration, Hungarian companies need to be much better prepared, according to Market Plc.

Another important Hungarian player on the market, the KÉSZ Group has also noticed that investors have become more cautious amid the uncertain economic conditions.

Among other things, the construction industry is facing difficulties due to the acceleration of inflation, which is most visible through the increase in production prices, and more expensive financing due to higher interest rates.

The long-standing labor shortage in the industry was also listed by KÉSZ Group as one of the difficulties facing domestic construction companies, which is why they have made it a priority to support vocational training in the construction sector and to strengthen sustainability projects.