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Are the surge in building material prices behind us?

Uczestnicy IV FORUM PMR Budownictwo w Polsce 2020

On 10 October this year, the leading representatives of the construction industry met during the 4th Forum Building Sector in Poland. The event was an excellent opportunity to exchange opinions on the expected situation on the construction materials market in the coming year.

Spectacular price increases are behind us

This year’s edition of the Forum was attended by 150 representatives of management boards of key contractors, developers, investors, manufacturers of building materials, as well as organizations associated with the Polish construction market. As much as 80% of them estimate that in 2020 the prices of building materials will go even higher, but only 8% of Forum participants expect a growth exceeding 10%. Only 6% predict a drop in prices next year.

Expected price dynamics of building materials in 2020

According to Piotr Kozina from the PSB Group, the spectacular price increase is rather behind us, while the moving prices will continue to move forward. Production costs have increased, and dramatically low margins in wholesalers, construction warehouses and DIY stores at 0.5-1% must be increased, which will translate into higher prices. However, as Andrzej Ulfig, President of the Board of Selena, noted, in some cases the market situation is very difficult to forecast, e.g. when a given raw material is supplied by only a few companies in the world and its price is, understandably, detached from the situation in Poland.

Tomasz Grela, President of the Management Board of Aluprof, a manufacturer of aluminium systems, stressed that in his industry, some products are now much cheaper than a few years ago, but customers are no longer interested in them, because they are naturally obsolete and today it is these products using new technologies that are more attractive to them.

Opportunity for prefabrication

Przemysław Borek, Vice President of Pekabex, confirmed that the cement from Belarus is reaching Poland, but plays an important role on the market only in eastern and northern Poland. In addition, it is a raw material of lower quality than the one needed for the production of prefabricated elements in his company, so he does not use it. In a situation where the industry is facing rising labour costs, prefabrication may gain in importance, as its use during the construction process may mean even 2.5-3 times less work than using traditional technologies. The Vice President of Pekabex today estimates the market share of large prefabricated products at 1.5-2%.

Forum Building sector in Poland – you have to be here.

Forum Building sector in Poland is an annual industry debate during which the latest data, forecasts and strategies determining the shape of the market are discussed. Traditionally, the Forum participants were the first to learn about data from the latest PMR report entitled “Construction sector in Poland H2 2019. Market analysis and development forecasts for 2019-2024“. Thanks to the presence of key players, the event has for years been a permanent place for gaining knowledge about the sector and the projects underway, as well as a review of development plans in Poland and abroad.

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