Construction industry will not develop without innovation

2015. 05. 08.

The tough years in the construction industry are over, its growth rate has however still not reached the level seen before the crisis. The key to further development lies within innovation - says Mr. Marcell Pintyőke, Communications Manager of KÉSZ Holding.

The downturn is over and, although the construction industry has already started to grow again, the baseline was quite low, meaning that there is much room for development. This development will, however, not be satisfactory without knowledge and innovation. This sums up the essence of the answers that Mr. Marcell Pintyőke, Communications Manager of KÉSZ Holding Zrt. shared in his presentation “What about the construction industry?” during the real estate conference of Napi Gazdaság. Mr. Marcell Pintyőke also mentioned some examples that may be learned from the best practices in Western Europe. The construction market had been balanced in Europe until 2008, except for Germany, which suffered from the unification of markets in this respect as well – recalled the expert. The industry turned downwards everywhere due to the crisis, but that is over now – he said.

The construction markets of the Visegrad Group have been evolving relatively together recently. The only exceptions were Slovakia, which was successful in taking advantage of the EU accession, and Poland, which had a great opportunity in the UEFA European Championship. Altogether, the crisis caused disruptions everywhere, but the direct root causes were different in every country. Although the construction industry is considered as a key economic sector, which has been giving about 4 percent of the GDP in Hungary since the millennium, indirect effects giving the industry a larger weight also occur. As regards the labor force of the industry, Mr. Marcell Pintyőke said the following: The number of lawfully employed persons was 250 thousand in 2013, but the elimination of undeclared employment still remains an issue to be solved.

Since 2005, the construction market has gone through a shrinkage of 40 per-cent and significant changes at the same time. The most typical of these in the current period is that there are fewer investments in the industrial segment, but thanks to the relevant EU tenders, a number of transport and infrastructural development projects have been started or completed recently. Reasons for the actual boom lie therefore partly within development projects imple-mented from EU funds, and partly within state funded projects.

In 2013, KÉSZ Holding contributed to the Hungarian GDP with 7.72 billion forints – as revealed by the economic footprint survey conducted by Századvég Economic Research Institute.
The latest available data reveal that growth has indeed restarted, but from a very low baseline, meaning that the sector has still not reached the growth rate experienced during the years before the crisis. The outlook is favorable, but the fact that the growth is relatively slow is partly due to the fact that the sector is falling behind in terms of research and development and innovation.

– The construction industry will not make any progress without innovation – claimed Mr. Marcell Pintyőke, according to whom one of the greatest challenges faced by the market players is the implementation of innovation into their operations. Knowledge, knowledge, knowledge – paraphrased the expert the previous motto of the segment (location, location, location). There will always be a demand for knowledge, which constitutes the greatest value for a business. KÉSZ Holding has therefore organized its activities into knowledge centers in order to achieve highest possible efficiency in its market operations.

– Most of the companies fought for survival during the crisis years, but now is the time for them to deal with innovation, because no development may be achieved without it – said Mr. Pintyőke, adding that the four pillars of the synergy compass devised by KÉSZ Holding are knowledge, innovation, openness and commitment. – Steps are to be taken in all four directions and the progress must be balanced – summarized the Communications Manager.

Source: Napi Gazdaság

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