KÉSZ Group: The success sector can give a support to permanent growth

In the last years construction industry providing an outstandingly good performance has stalled due to the pandemic but the sector is ready to assist development of the Hungarian economy - similarly to the years preceding the pandemic - by brisk growth.

This year the construction industry showed a diversified view. The sector had good months but it does not increase yet permanently partly because of the effect of the pandemic. However, it is favorable that, in the aggregate, in the first six months of the year the volume of production of the construction industry was by 7.3 per cent higher than one year ago. Within the half-year period at issue, the sector achieved positive results in January, March, May and June but there was a regress in February and April.

Tamás Vida, CEO of KÉSZ Group possessing one of the most diversified portfolio and being active also in regional market, said: “In June the volume of construction production was by 27.8 per cent higher than a year ago according to the raw data. The tendency of the orders determining the future performance of the whole construction market can be stated to be favorable according to the latest data. The volume of new contracts concluded in June was by 88 per cent more than a year ago. Besides, the total volume of construction orders was by 21 per cent more than a year ago in late June.

Durable pillar
In the CEO's opinion, the sector has provided outstanding performance during a decade. The sector's production volume was near 70 per cent higher in 2019 compared to the 2010 level, however, as a result of the stall due to the pandemic, this indicator has diminished and exceeded the reference value ten years ago by more than 50 per cent. However, it is also important to see that in the construction industry the number of employees has grown by 31 per cent and in 2020 the sector employed more than 360 thousand people and this expansion substantially exceeds the national economy average of 29 per cent.

The increase in the construction industry seen in the last decade and the established human and asset resources give a good base to ensure that the sector can contribute to development of the economy permanently after lapse of the uncertainty caused by the pandemic. In the opinion of Tamás Vida, it is important to keep these capacities. The market operators, including also KÉSZ Group, trust that with restarting of the economy the construction industry will be given a dominant role in the private sector and in the projects financed by the State and the EU and the sustainability aspects appear in the sector to an increasing extent.