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The construction industry closed with record-high company formation in 2018

Over a year, more than 5,000 new companies were created in the construction industry, resulting in new records for the industry.

In addition to the establishment of 5017 companies, the construction industry closed the year with 4005 company cleanings in 2018.

Values ​​are irregular in many ways. On the one hand, the number of companies is decreasing or stagnating in most sectors, while in the construction industry it rises sharply, and on the other hand, the 2018 data is the highest founding value of the last 7 years.

However, the situation is not really reassuring.

The demand for construction is growing at a rate that suppliers cannot easily serve.

Customers are often in a vulnerable position due to the high workload of suppliers. The year 2018 shows an increase of more than 20 percent in construction output compared to 2017, even though 2017 was a very strong year compared to previous years.

The number of company start-ups in the sector is growing abnormally, compared to other sectors, with more than 51,000 construction companies currently operating in the country.

In addition to business associations, there are 52,000 private entrepreneurs in the sector, and the number of individual entrepreneurs is growing even faster than the number of companies.

The construction industry has always reacted sensitively to the waves of the economy; However, the momentum is likely to continue in 2019, but it is expected that there will be no such increase.

By 2019, 5700 company start-ups and around 3,700 company cancellations are expected in the sector.

In 2018, 851 liquidations were launched in the sector, which was 6 percent lower than in 2017 and only one-third of the 2014 value.

The liquidation trend is therefore encouraging, but overall its value is still high.