Crisis in the construction industry: Long reaches PLN 1.72 billion!

dailyblitz.de 3 months ago

The arrears of 46,4 1000 construction companies are nearly PLN 1.72 billion – according to the National Debt registry (KRD). It's about 11% more than in April 2024. au 23% more than 2 years ago. Average debt per company is 37 1000 PLN. The origin of specified a hard situation is not only problems in the housing market, but besides decrease in the number of public tenders and stopping large investments.

Which companies have the biggest financial problems?

According to KRD data, 31,5 1000 single-person business activities (JDG) is behind payment – this twice as many commercial law companies in the construction industry. full JDGs owe to creditors PLN 843 million, while companies are having difficulty repaying PLN 875 million.

"In 2024, construction companies were liable for 15% of all bankruptcy and restructuring proceedings. However, the problem in this sector is not only the scale but besides the structure. The manufacture is heavy fragmented – most of the entities active are micro-enterprises, frequently without financial background and with limited access to external financing" – says Adam Łącki, president of the KRD.

Most at risk: subcontractors

They're doing the worst. subcontractors, i.e. companies specialising in:

  • demolition and preparation of the site,
  • electrical and plumbing installations,
  • Finishing work.

Theirs. total debt amounts to PLN 810.2 million. In second place are companies dealing with building construction – their debt reaches PLN 710 million. The smallest backlogs are companies related to construction of civilian and water engineering facilities (197.7 million PLN).

Who's the 1 with the most credit?

The construction manufacture is mainly in debt to:

  • financial and insurance institutionsPLN 948.5 million,
  • retail and wholesalePLN 299,2 million,
  • other construction companiesPLN 170.6 million.

Interestingly, the construction companies themselves besides have own debtorsWho owe them total PLN 355,8 million. Among them they dominate:

  • other construction operatorsPLN 170.6 million,
  • industrial processing companiesPLN 34.2 million,
  • real property managersPLN 25.3 million,
  • architectural firmsPLN 24.6 million.

Who doesn't pay construction companies?

Among the debtors behind payments to the construction industry, they dominate companies governed by commercial law PLN 260.4 million. Individual consumers are guilty PLN 20.3 million.

Summary: Is the construction manufacture facing a wave of bankruptcy?

Increasing debt, falling public procurement and liquidity problems can lead to subsequent bankruptcy in the sector. The most susceptible are microfirms and subcontractorswhich frequently deficiency financial resources to last the crisis.

Will the situation improve? Everything depends on the revival of the housing marketplace and expanding public investment. For now, however, PLN 1.72 billion in debt is simply a major challenge for the full industry.

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Crisis in the construction industry: Long reaches PLN 1.72 billion!

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