Construction output In Central and Eastern Europe

With negative output growth in the Construction industry in Western Europe Central and Eastern Europe is seen as the shining light in the Construction Industry. Most of the Countries across the Central and Eastern Europe region have shown positive output growth in the construction sector for the 12 month period from Nov 2009 to Nov 2010. The average Growth across the CEE region is 2.1% for 2010 and in 2011 the construction output is expected to reach double figures in some Central and Eastern Europe Countries, Poland , Russia and the Czech Republic are expected  to be the leading growth markets  for the Construction Industry in 2011 .

The top growth markets for the Construction Industry were Russia (+4.9%),   Bulgaria (+2.9%), Poland (+2.8%), Slovakia (+2.5%), Hungary (+2.2%), General Balkans (+1.1%), Ukraine (+0.9%) and Baltics (+0.4%) and the decreases in Romania (-4.6%). The leading Western Europe markets were generally in decline with the United Kingdom (-1.4%), France (-1.3%) and Germany (-1.1%).

The Construction boom in Russia is being led by Transport infrastructure construction and development in Utilities and the energy sector.

Transport infrastructure is booming and has increased by 11% in 2010 in Russia and is expected to grow by over 45% between 2011-2015 for transport infrastructure construction. The development programme is expected to receive investment of approximately $450bn over the next five years. The Government in Russia has reintroduced road funds so the planned investment is ring fenced and expected to increase as you new projects come online. With the Winter Olympic in Sochi in 2014 there is still a lot of Construction needed to meet its needs and Road construction is a major part of this. Also with Russia winning the 2018 World Cup finals then again this will see a big increase in investment in the Construction Industry. Thousands of kilometres of new motorways, railways and waterways were to be built, along with numerous sea ports and airports. Roads and railways were to account for almost 80% of the programme’s proposed funding. Of the total amount, one-third was to have come from the federal coffers, 5% from regional budgets and interbudgetary transfers, and more than 60% from non-budgetary sources such as banks and private investors.

As the Energy sector is a major growth industry in Russia then is €2 billion of planned investment for 2011 and a lot of this funding is going into Energy transporting.

The Building Materials market in Poland going to grow by 10% annually -2011

Poland is expected that the Building Materials market in Poland will grow by 10% in 2011. The roofing materials industry will grow by over 11.5%. The largest growth market is in the Sheet Metal working sector and this is to the supply of new factory’s , warehouse and Logistical distribution centres . The flat roof sector is looking at better growth then the pitched roof sector. In particular, top-shelf products will gain significance in the coming years. Thermal Insulation is booming and increase 15% year on year, Cement is growing by 12% and the Brick market slightly lower at 11%. With The European Football finals being Co-Hosted by Poland in 2012 preparation is still taking place and with funding from the EU cohesion fund supporting the Construction industry in Poland then the demand for Building materials is set to increase.  

Growth returns to cement markets in CIS countries - October 2010

After a difficult 2009, when there was a reduction of more than 20% in the consumption of cement in the region, the cement markets in the countries of the former Soviet Union are expected to witness growth again. In the longer term, per capita cement consumption in the CIS countries – with their immense infrastructure development and housing needs – should increase steadily and match the levels observed in the more developed countries. With a view to increases in demand in the future, local producers are boosting their cement production capacities.
Given the similar rates of development in, and numerous links between, Russia, Ukraine, Kazakhstan, Belarus, Uzbekistan, Azerbaijan, Moldova, Turkmenistan, Georgia and Armenia, these countries can be treated as a single cement market, with a total population of more than 260 million and a total area of 22 million square kilometres.
In both 2006 and 2007, the annual increase in the monetary value of cement consumed in these countries was close to 80%, reflecting a steep rise in cement prices and an ongoing construction boom in these countries. In 2008, the increase in the combined value of the cement markets in the region slowed to 6%, and this was followed by a steep, almost 50%, contraction in the CIS cement market, a result of tumbling prices and falling demand.

Construction markets in CIS countries recovering after downturn - August 2010

The construction industries of the three largest former Soviet Union countries are still in the red but are showing some signs of recovery. Whereas Russia and Kazakhstan may even experience moderate growth this year, Ukraine will probably not follow in their footsteps until 2011.