Focus group research: there is no deep recession yet, the market is just “reorganizing” itself

By: Trademagazin Date: 2023. 04. 25. 11:24

According to experts, the construction industry, which was “diluted” due to the decrease in the desire to invest, is now returning to normality, according to Wavin’s recent focus group research. The current situation can be considered a kind of calm after the “madness” experienced in previous years, the managers of the leading construction, civil engineering and building engineering companies see that the narrowing of the market will also have a positive effect on the work ethic in the construction industry. The research also revealed that the clients who are thinking about sustainable projects due to the regulations or the property’s value stability are aware of the cost implications of what they are willing to pay.

In March of this year, Wavin, which deals with civil engineering and civil engineering, asked the managers of the market-leading contractor, civil engineering and civil engineering companies about the trends in the construction industry that they had experienced in a focus group research. The respondents agreed that in the construction industry, as a result of the falling demand, we can actually observe a kind of reorganization – with a slight recession. Of course, the decline in the desire to invest can already be felt, but the lack of orders may only be a problem in 1-3 years, since the contract stock of the last few years has not yet expired, and the revenues have not fallen significantly. The narrowing of the market is primarily manifested in the fact that sector players who previously only worked on large state orders appeared in the tenders announced in the competitive sector.

According to the experts participating in the research, the biggest challenge at the moment is the work ethic in the construction industry, the attitude of some employees, as well as the lack of skilled labor and supply. According to the respondents, the reason for this can be found in the fact that thanks to the recent “construction industry fever”, the workers were in a particularly advantageous situation, and many took advantage of this, and the high turnover made the work of the contractors very difficult. The narrowing of the market can change this as well, and the role of companies that provide reliable, fair workplaces and colleagues who do quality work will be valued, especially if the companies that were filled to meet the previous demand begin to slowly reduce their staff to the current order stock.