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Polish Construction Companies 2023 - Major Players, Key Growth Drivers and Development Prospects

11th edition, November 2023

You are welcome to read the tenth anniversary edition of the report: “Polish Construction Companies 2023 - Major Players, Key Growth Drivers and Development Prospects.

In 2022, revenues of the fifteen largest construction companies reached almost PLN 44.5 billion, an increase of 22.5% compared with the previous year. This increase in revenue, despite the high base in the previous year, reflects the scale of the market, but it also results from macroeconomic factors, such as in particular, high inflation. This dip in results in certain segments of the building sector (housing market) were offset by ongoing implementations of large infrastructure projects and specialised construction, especially on the warehouse market.

 
  • The average operating margin of the fifteen largest construction companies increased by PLN 12 million (6.5% YoY). The Budimex Group (PLN 872 million) and Poznańska Korporacja Budowlana Pekabex S.A. (PLN 281 million) enjoyed the highest operating income. The largest nominal increase in 2022 was recorded by the Goldbeck Group (improvement by PLN 131 million, which is an increase of 178%), while the largest percentage increase was recorded by Atlas Ward Poland (improvement by PLN 126 million, which is an increase of more than 206%). The above reflects the market situation at the time. In recent years, the market has seen a significant increase in the cost of materials and labour, which has translated into higher prices of the services performed - details are included in the second chapter. Achieving this balance together with implementing major infrastructure programmes and introducing different rules for the valorisation of construction contracts (public investments), allowed the companies to achieve sound financial results in 2022.
  • In 2022, construction and installation output measured in current prices increased by 20.5% year-over-year (in fixed prices - 8.8% YoY). During this period, construction companies carried out investments worth PLN 291.8 billion (vs. PLN 242.1 billion in 2021). This increase in value was significantly influenced, as in previous years, by the realisation of infrastructure investments financed by EU funds.

"Public entities remain the key investors in the Polish construction market. Their activities, especially investments in rail and road infrastructure, will be one of the factors influencing the growth of construction and installation output in the coming years. EU funds have traditionally played an important role in financing. A significant part of the EUR 76 billion that Poland will receive from the cohesion policy budget in the financial perspective for 2021-2027 will be allocated to the further development of , among others, road and rail infrastructure"

– says Łukasz Michorowski, Partner, Audyt CE A&A ESG & Construction, Deloitte .

  • The construction sector is responsible for 37% of global carbon dioxide emissions and 36% of global energy consumption. In addition, the developed area is expected to increase by approximately 75% during the period of 2020-20501. Therefore, construction companies should focus more and more on environmental sustainability aspects, aiming to decarbonise projects and achieve net zero global emissions by 2050. In addition, construction has a significant impact on water consumption – it consumes 33% of the world’s water resources2, it accounts for 35% of the waste generated in the world3 and 40-50% of global raw material extraction4. The development of standards, policies and strategies related to environmental, social and corporate governance issues depends on the specific operations of construction companies, such as types of building constructed, phases of a construction project, and above all on whether a company is involved in the implementation of new projects or renovation of existing buildings.
  • A survey was carried out in the process of preparing this report. It was addressed to the entities operating on the Polish construction market. The aim of the survey was to find out the opinions of those working in the industry concerning the outlook for the construction industry, the impact of diversification of services and the assessment of the most important risks and opportunities in the context of companies’ operations in the coming years. The results of the survey in 2023 indicate that three areas will have the greatest impact on companies’ operations in the coming years: workers availability (59%), an increase in material prices (57%), and problems with subcontractors (37%). It is worth noting that in the last year’s survey, as many as 79% of respondents also pointed to the increase in material prices as one of the factors, 17% pointed to problems with the workers availability, and 31% pointed to problems with subcontractors. In addition, 28% and 22% of responses, respectively, indicated “regulatory risk” and “tax regulation risk” as a threat, which was indicated by less than 20% of respondents in the last year’s survey. 20% of respondents chose a risk relating to the end of EU perspective. As other threats, the respondents indicated mainly the investment slump or decline in demand due to closing credit taps for buyers (approx. 17%).

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