Czech construction sector continues slump

The Czech construction sector has lost CZK 443 bln and more than 50,000 jobs since 2008, stated Miloslav Masek, the CEO of the Czech Building Entrepreneurs Association, Ceskenovity newswire reported April 22.

“The number of contracts has been falling in all segments and it is believed that 2014 will not be a year of a change as nothing indicates improvement,” said Masek, as cited by the newswire. “The situation might stabilize next year and 2016 might be a year of the first modest increase in the sector.”

Statistical data showed that in the record-breaking year of 2008 sales in the sector totaled CZK 547.5 bln, while in 2013 it totaled to ca. CZK 397 bln, which is CZK 150 bln less.

The number of large construction companies also dropped by 25 percent.  In 2008 there were 767 companies with 50-plus staff registered as active in the construction sector, while in 2013 there were only 578. Employment in the sector also dropped from 110,000 in 2008 to 84,000 in 2013.

Masek stated that the decrease in the number of big construction companies and drop in employment level in the sector was a result of companies being caught unprepared for the crisis, as well as the low number of public contracts. According to Masek, Czech Republic is the last country in Europe where construction sector still keep falling.

Photo courtesy of Frettie