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ANALISYS: Significant increases for entrepreneurs' incomes, during first quarter

After another decline of the construction market in 2014 which led, in general, to a decrease in revenues of the companies specialized in the execution of specific works, the industry recorded its first significant post-recession development in the first quarter of this year (+12.5 % compared to the same period in 2014, according to the National Institute of Statistics - INS). The upward trend is confirmed by the financial results including the main construction companies, mostly of them specialized in the execution of common works and civil engineering. Another positive signal is represented by the constant growing number of large projects in Romania. In the infrastructure field, the revival is still not present, and the prospects are uncertain. According to estimates of INS, on short-term local construction market will record an increase in volume, which will generate a moderate evolution of the number of employees in the field. The operations at superior parameters as against the ones in the previous years will be encouraged by the influence of the increased stock of contracts and orders. At the European level, the situation is better, international specialists considering the sector being in the midst of a sustainable recovery. While the pace of the recovery can be frustrating, last year marked the first period where all the major construction markets made gains or stayed positive. As in 2014, some sectors may cool in 2015 while others heat up. However, with an upturn in the market, there are some difficulties by the employment point of view. There is now a shortage of skilled trades working in the sector, such as carpentry, joinery, glazing and building services. Market consolidation has now led to a shortage of smaller, specialist firms, with a number of companies declaring insolvency during the recession. Despite an overall increase in average operating margins in 2014, pressure on contractors still remains, as workloads have grown and contractor margins remain under pressure.

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