Poland Construction Chemicals Market to Drop by 6% in 2013 on Weaker Residential Construction Segment, According to PMR24 Jan 2013 • by Natalie Aster
A dwindling number of housing starts substantially depress the outlook for the construction chemicals market in Poland, which is expected to shrink by a few percent in 2013. This scenario is also confirmed by a decline in the business confidence indicator for the construction chemicals industry from 14.7 pts in 2011 to 8.2 pts in 2012.
According to the latest report “Construction Chemicals Market In Poland 2013” by PMR, the construction chemicals market is expected to decrease by around 6% in 2013 after marginal increases in 2011 and 2012. A weaker growth outlook will be driven by the declining residential construction segment, which accounts for three-quarters of the construction chemicals market in Poland. PMR’s researchers expect that the floor area of housing projects completed will steadily fall from 15.4 million m? in 2012 to around 13.5 million m? in 2014-2015.
Construction Chemicals Market In Poland 2013
Published: December, 2012
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A weaker outlook for the construction chemicals industry is also confirmed by the second round of the survey of 300 small- and medium-sized renovation and construction companies. Assessments of the current situation and expectations for 2013 in terms of financial standing, backlogs of orders and employment levels reveal a less optimistic outlook than in the year before. As a result, the value of the business confidence indicator for the construction chemicals market in Poland stood at 8.2 pts, compared to 14.7 pts in last year’s study.
How the surveyed companies perceive the outlook for 2013 is largely driven by the type of work, in which they are involved. According to the specialisation area, PMR’s confidence indicator for the sector has the highest values for companies specialised in the execution of thermal insulation systems (12.1 pts) and tiling companies (10.7 pts). Screeding companies provided assessments at a level consistent with the average for the construction chemicals sector as a whole, while wall construction companies gave significantly lower assessments (6.9 pts). The poorest marks are provided by companies making the traditional thick-coat plasters (3.7 pts), which two and a half lower than the average for the sector as a whole. “The business confidence indicator proved to be the lowest for the two types of work where orders relating to new buildings prevail. By contrast, the situation looks good for those segments where, in addition to new buildings, companies also stand a chance of filling up their order books with renovation work contracts. It is a particularly important issue, especially in view of the expected downturn in housing starts,” said Bartlomiej Sosna, Head Construction Analyst at PMR and the report’s author.
The outlook presented by PMR’s researchers is based on the assumption that practices followed by construction companies regarding the use of bagged mortar will not change and the proportion of companies using pre-mixed solutions will remain roughly flat. However, if producers of construction chemicals intensify promotional efforts, the proportion of ready-mix mortars might increase and prop up the market’s growth. Still, a more likely scenario is that the proportion of pre-mixed mortars falls as a result of the market’s downward pressure to cut general contracting costs, which was already evident for selected groups of products.
The Use of Construction Chemicals in Poland: Ready-Mixed Products and Solutions Made On Site (%), 2012
The highest proportion of construction chemicals mixed on site is reported for floor screeds and masonry mortars (each around 40%). Another category which recorded a high proportion of products made on site is plaster – around one-third of the plaster used in construction is mixed from components on site. The proportion of pre-mixed solutions is the highest for thermal-insulation systems and tile adhesives (around 90% for each category.)
More information can be found in the report “Construction Chemicals Market In Poland 2013” by PMR.
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