The Polish construction industry is facing a cumulative set of unfavourable factors. Companies are struggling with rising material costs, falling investment profitability and payment backlogs. The situation is made worse by difficulties in finding employees, compounded by fiscal changes funded by the government. Analysts are warning that a wave of bankruptcy in the industry.
The construction industry's fears about the disastrous effects of the accumulation of investments are beginning to be confirmed by the data. According to the latest Coface report, average payment delays in the construction industry have already reached 116 days, 32 days more than last year.
As the liquidity of companies deteriorates, it increases noticeably number of bankruptcies in the construction industry – by 18 percent in the first half of 2018, which accounted for 55 percent of all Bankruptcy in Poland.
According to experts PMR Restructuring a significant increase in the number of bankruptcy and restructuring applications in the construction industry is expected already in the autumn of this year. Local government elections will also have a negative impact on the state of many companies, because - in their opinion - many investments will be frozen and new ones will not be undertaken until the end of the year.
16 July 2018:
" Another wave of construction insolvencies ahead?
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