Poland’s construction sector struggles with contract shortages, rising costs, and financial instability, but future infrastructure investments may offer hope.
The construction industry in Poland is facing significant challenges, with production falling by nearly 10% year-on-year in August 2024, according to GUS data. All sectors were affected, including civil engineering, specialized construction work, and building construction. This decline is primarily due to completed contracts and a lack of new orders.
Rising Costs and Uncertainty
In an October survey, 61% of companies cited labor costs as the biggest obstacle, while 53% pointed to both workforce shortages and economic uncertainty. Price increases in construction services were declared by 63% of firms, driven mainly by rising energy prices and labor costs.
Financial Struggles and Future Outlook
Financial difficulties persist, with construction sector debt reaching 5.8 billion PLN by the end of Q2 2024. However, experts like Dr. Damian Kaźmierczak believe future investments, particularly in public infrastructure and defense projects, could improve the sector’s outlook, especially if modern technologies are adopted.