PRODUCERS: The construction materials market could fall below 3 billion EUR

The local market of construction materials could fall below 3 billion EUR this year, given the 9.1% decrease in turnover in the area in January 2014 compared to December 2013 and the lack of projects and funding in the sector. "The current year represents a watershed for the construction market in Romania, given that the corporate expectations are not realistic and the new taxes on special constructions create new pressures on the budgets of small businesses. Currently, we are working with our last resources and the premises of last year, as well as the decrease in the issued building permits and construction investments, do not encourage us. The much promised highway projects have not started, the situation in the thermal rehabilitation segment is also not encouraging, while the only works that still maintain the market are the ones concerning utilities, supported by the local budgets of municipalities", said Claudiu Georgescu, the CEO of the Association of Construction Material Producers of Romania (APMCR). According to the representative of producers and in connection with the data from the first three months of the year, the market will almost certainly fall below 3 billion EUR in 2014. The masonry material market (brick and concrete blocks) continues to be the most affected one, and the "price war" led companies to create low-quality products. "Out of the nearly 40 brick manufacturers that were before the crisis, there have remained 3-4 that are big and 4-5 in the second line. The factories were closed from Jimbolia to Constanta. The concrete blocks sales fell again last year from the 2012 level", said Claudiu Georgescu. In 2013, the local construction market reached around 3.3 - 3.5 billion EUR, a level similar to that reported in 2012.