PIPES: Activity depends on the public investments

The local market of piping systems and fittings designed for water supply projects, sewerage and wastewater treatment plants engages on a slightly upward trend, largely due to the works managed by the local administrations' network management. Thus, the dynamics of the analyzed sector is closely related to that of the construction industry, for which the signals are quite contradictory at the beginning of this year. Given the context, most operators in the industry estimate that the current year will be a period of stabilization, and, from 2014 onwards, a new trend of moderate growth will install. Overall, the pipe market is divided into two main sectors, namely the producers of metal pipes and of plastic pipes. The expected trends in both segments are similar, depending on the evolution of public investments. According to managers of companies from the industry, the financial and economic crisis had also a positive effect on the specific market, given the fact that only the really powerful, professional and profitable groups lasted in the field. In the next period, the main challenge will be generated by the decrease of the number of large projects, which commonly use complex piping systems. Overall, the plastic pipes sector stands at about 100 million EUR. A complementary segment is the one of pumps and pumping systems. The domestic market stood last year at the level registered in 2011, which totalized around 100 million EUR. The management of specialized companies, however, expects a significant increase in the field, on the medium and long term, subjected by the political stability and the government efforts made in order to improve the performance of investment programs, especially those funded through European funds. During the Summit on the Multiannual Financial Framework (CFM) of the European Union for 2014-2020, which took place at the beginning of February in Brussels, Romania was allocated cohesion funds totaling 21.825 billion EUR. The amount will be indexed to inflation recorded during the seven years of implementation. The absorption of these funds could result in the implementation of many projects for water supply and sanitation, especially given our country's deficiency in this regard. For further information and a detailed analysis of the current Agenda Constructiilor issue, click here!