The construction industry was even more advanced, with 15% growth in company formation, and a 5-10% increase in production volume in the first 3 months of the year.
What is really special about company formation is the fact that the growth was more than 15% higher, compared to the previous quarter.
According to data, the production volume increased further, in February, the value was 48% higher than the year before so a 5-10% growth is becoming commonplace.
However, as far as production data is concerned, the negative side is that the growth of other buildings seems to be already hit the top. In the case of the contract portfolio, there is a downturn in other constructions. In February, however, the construction of buildings shows an increase of over 50% in relation to the contract portfolio.
The number of company foundations and the volume of production both indicate a positive entrepreneurial spirit and increasing demand.After many years, the industry cancellations seemed to have come to an end, but the first quarter of 2019 shows a 17% increase compared to the previous quarter.
Thus, the number of company formation and company abolition increases together, inducing serious fluctuations and uncertainty in the sector.This process is also evidenced by the fact that the number of employees is not able to grow at the same rate as production.
The sector continues to face severe labor shortages. Increasing production numbers are to a large extent to be found in efficiency gains, but a good amount and quality of workforce could mean a lot to the sector. However, long-term equilibrium depends on many factors.
The declining EU subsidies after 2020, the long-term solution for the VAT on housing, the liquidity situation of construction companies are all issues that can affect long-term sustainable growth.
One of the goals of the Construction Technology Cluster (SCC) managed by the Chamber of Commerce and Industry of Pécs-Baranya is the reduction of labor shortage in the sector.
The members of the cluster see the long-term solution to this shortage in career orientation events; thus, they are promoting the construction industry on open days, school events and school competitions.