This autumn’s conference succeeded in combing elements of maximum interest for the constructions and constructions equipment market in Romania. The events organized by the magazine "Masini si Utilaje pentru Constructii" (Machinery and Equipments for Constructions) represent a good communication environment for the participants: construction companies representatives, construction equipments importer companies representatives, the presidents of the most important associations in the field, as well as representatives of the companies active in the sector of trade with products/services connected to the construction sector (spare parts, software, rentals, financial services). The fifth edition of the conference was attended by decision makers in the sector, which helped the audience to better understand the current market situation, after the first two quarters of the year.
Laurentiu Plosceanu, President of ARACO (Romanian Association of Construction Entrepreneurs) has highlighted the bad situation we are currently in, as there were worldwide at the moment not less than four crises (of the economic model, of the migration and asylum, of the terrorism and the one started in the East, first in Ukraine, then in Syria etc.), Romania being influenced by each of these crises.
Moreover, "Romania is a cocktail of crises” Plosceanu added, "and it will be hard to overcome them. One of these is an image crisis of the construction sector, based by a decline of the respectability of the guild. Who generated it? Lately it can be clearly seen, after the investigations generated by DNA, that the construction sector was a prisoner of the political sector, which controls in many cases also the mass-media."
Speaking of the current year from ARACO perspective, we talk about a failed year from many points of view. "The infrastructure should have been an important engine of the sector’s development, as there are both money and available projects, but we have a master plan drawn with big delay, concentrating lots of investments in the future community program on the central Romania for the closure of the 4th corridor and sacrifices developments of many other road segments, and we are not convinced it is the best approach.
Regarding the financing in construction, the President of ARACO is concerned by the manner the banking sector sees the construction sector in Romania: "There are decisions, both within BRD in Paris, and BCR in Wien, by which the exposure in the construction sector, starting next year, should be significantly diminished. We should talk with the Romanian Bank Association in order to limit the negative effects of this change in the banking environment, a sensor for us saying that the financial seism is ready to happen."
Liviu Neagu, President of ADUC (Association of Construction Equipments Distributors), also expects a new crisis, but considers that many of the negative effects could be fought as we insist on innovation and there is the courage to take some decisions. Moreover, we should not ignore the fact that Romania has access to financing.
"Ok, the banks are reducing the exposure o the construction side, as Mr. Plosceanu said, but it also depends on the project – an interesting one should always find financing. But with the accessing funds we are two years late. We didn’t learn anything from the precedent budget year. They are all running now on last minute to sell, buy and take maximum advantage from the remaining period, in order to demonstrate eventually that they succeeded in spending that money. But we cannot face Europe with projects hardly drawn, saying that they are economically efficient."
Liviu Neagu also mentioned the construction indicators, which are good this year, but things aren’t that easy. "All foreigners ending here ask what happened as the construction indicators were growing, as other larger European countries had decreasing indicators. Despite that, most of the constructors are complaining, from different reasons, including reasons considering the financing."
About the construction equipments market, the President of ADUC made public some data for the first time in the conference: "In 2015, the construction equipments market registers an interesting growth – we estimate a 12% plus. I would say that this is the biggest market following the crises, compared to the years 2005-2006. IT is a good sign, but there are also some question marks: what are the people doing with those equipments? There are many who hurry to buy this moment, this grace period granted by Europe. But the number of the hours worked by our partners, the construction companies, is unfortunately this year smaller than last year. There are few companies exceeding the performances from previous years but there are lots working less. For next year I estimate that, if at least 10-15 pct of the announced projects would be started, the market will continue its positive trend."
On the same occasion, Cristian Erbasu, the president of the Construction Employers Federation Societies, talked about the different law modifications and possibility of new large economic crises.
"Even ten crises could come, this is the market economy. We need to understand that there is a spiral where things are working better or worse over time, but despite the international situation it is very important what we are doing inside of the country, as the last crises was also felt and occurred differently for each country. Look at Poland, which practically didn’t have crises as it focused more on investments and less on consumption."
The certification law represented one of the subjects approached by the president of FPSC: "After 25 years we are still not prepared for this market economy we say we want it. Let’s think about the certification law. In the last 15 years we are saying that the privatisation was quite messy, especially in the construction sector and now we want to make some order, we offer all the chance to work. However they all need to follow some steps, you cannot register and then do works of hundreds of millions Euros without equipments, without specialists, without experience. The state proposes now a certain certification, but made in one of its departments, although I’ve said many times that in this situation its effect would be zero.”
Regarding the public acquisition law, Cristian Erbasu mentioned: "IT is only an adjustment of the old law, including the EU instructions, which will generate many confusions. Why? Because the entire law package, imperative for starting the 2014-2020 projects, was drawn in a short period by persons who had some knowledge, bit had never experienced the economic reality."
Regarding future projects, capable to maintain a positive dynamics of the construction sector, Erbasu declared: "As in 2015 we had barley tenders, the consequence would be that next year there would be no works. Today, some of the companies register an important growth, but this is due to the works with EU funds, which should be completed and everybody hurries to end them. But then, our estimations say that hardly in the end of 2016 and in the beginning of 2017 things will start moving again, in order to reach a similar level to the present one in the end of 2017-2018 and then at least in 2018-2020 to have some peak years for the constructors if we learn how to use the European funds ."
Claudiu Georgescu, President of APMCR (Association of the Construction Material Producers in Romania), said: “The private capital becomes a force on the construction market. I would like to suggest that through the lobby you make to support the construction industry by adopting urgently the construction companies certification law."
Regarding the university environment, Lucian Hornea, former President of ASCB (Construction Students Association in Bucharest) talked about some problems: "Without a direct involvement of the private sector in universities, especially in the technical ones, I do not believe the workforce problem to be ever solved. "
The event was attended by important construction companies, such as: Constuctii Erbasu S.A., Carpatcement Holding SA, OVI Group, Maxi Desing, P3 Logistik Parks, etc, as well as authorities representatives: CNADNR, APDP Bucuresti si Oltenia, CNCisC, as many other important players in the sector.
Through the series of conferences, the organizer intends to offer solutions to a general problem, existing on the current construction market, with the purpose to optimize and make efficient the process of acquisition/sale of construction equipment, with the support of intelligent solutions.
The conferences of “Masini si Utilaje pentru Constructii” generate a proper environment for a constructive communication between participants, favouring the networking, the dynamic presentations, news from the construction field and the connected areas, in order for the participants to have a clear Return Of Investment in the end.
You can watch the conference video following the ling: http://www.masinisiutilaje.ro/media.html and photographs of the event of the Facebook page: https://ro-ro.facebook.com/revistamasinisiutilaje
The next edition of the "Masini si Utilaje pentru Constructii" conferences will take place next spring and will focus on "Operating costs reduction and profitability in the construction sector." (source: Masini si Utilaje)
