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ANALYSIS: Nearly 20% contraction in geotechnical works activity

The Romanian sector of geotechnical and foundation construction works registered a contraction of about 18.5% last year compared to 2013, the total turnover of the companies specialized summing about 75 million euro at the end of 2014. In 2013, the industry have stood to about 92 million euro, in terms of value. The managers of the main companies in the industry said that the market would return to a growth trend this year, given the general revival of the construction market in the first quarter (+12.5% compared to the first three months of last year). Dependent thus significantly from the construction industry, the prospects on geotechnical works and foundations segment are positive, but the lack of market liquidity, investor confidence still low and the excessive taxation are real obstacles to a sustainable resumption of activity in the entire sector. In Romania are active about 20 specialized companies, including leaders such as Bauer, Octagon, Soletanche Bachy, Terratest Geotehnic, Züblin Romania, Edrasis Construct etc. These companies are specialized in entrepreneurship and geotechnical construction and foundations, as well as in executing drilled piles, and they carryied out works on projects located throughout the country. In 2014, they recorded a total turnover of about 75 million euro, according to the latest data published on the Romanian Ministry of Finance official website. The results show a decrease of 18.55% compared to 2013, when the specific market recorded a growth of 4.4% compared to the 88.7 million euro achieved in 2012. The increase is subsequent to a business reduction of 11.4% in 2012, compared to 2011. In terms of value, the sector of geotechnical works lies at the end of 2014 at the lowest level in the last seven years. In 2015, the entire activity in the sector will be influenced by the funding of infrastructure and enery works.
 

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