Given that some of the major projects started in previous years are expected to continue in 2014, and the initiation of new public works is also envisioned, this year could mark the beginning of a slow recovery for the local construction market. However, the outlook can become reality solely to the extent to which the works necessary in order to achieve the investment objectives of the Government regarded as a priority will start practically, if the residential and the construction sector will continue to develop and if the extension for one year of the deadline for accessing European funds will have a positive impact on the construction market. Overall, the managers of the leading suppliers of building products and systems from Romania estimated that the decrease in the area is close to its end and, starting with 2014, we shall witness the first signs of revival.***
The local equipment rental market has entered on a downward trend in the first half of last year, registering a decrease of 31% from the corresponding period in 2012, according to the data reported by the Romanian Association of Rental (ARI). Simultaneously, the companies active in the field have noted further losses or decreases of profits. Currently, ARI Rental has 19 members, and estimates an increase of the number of affiliated companies up to 25 in 2014. The prices for rental equipment entered on a strong downward trend since November 2011, reaching a new record low level after the one registered in June 2010. This factor increased the losses of the industry and, together with the growing number of insolvencies among customers (represented especially by construction companies) led the entire industry on the verge of collapse. For this year, ARI Rental management is taking into consideration the advertising of the renting concept by demonstrating the benefits of such services on short and medium term. Furthermore, a code of conduct in business dedicated to both association members and collaborators will be developed, with the aim of improving the quality of existing relationships.
