The Hungarian construction industry starts to grow. The actual condition of the economy is well reflected by the profitability of the construction industry. Fortunately, lots of ideas are on the desks of the planners, work is being done with great pace day and night, and plans are being turned out on a daily basis. But how about the implementation of these plans?
Is the crisis over at other areas of the construction industry too? What is the aftermath? - such questions were directed to the owner of Grabarics Construction Ltd, which is one of the major construction company in our region. Mr. Gábor Grabarics gladly shared his thoughts and experiences with us. 

What processes characterize the day to day life of the Hungarian construction industry?

- As was reported in the news, the first quarter in this year was closed with a lower GDP. Viewed from the aspect of the construction industry, this period proved to be rather quiet in spite of the high expectations. It seems that the players are bracing themselves at the starting line, but this field is not started to become active yet, large infrastructural projects, road and railway developments were not started or only in partially. Free capacities are the characterising aspects with regard heavy motor vehicles and well as with regard the working machines. Fortunately, the situation seem to be improving by the mid summer.

- In my opinion, the reason of the slow start is the lack of EU funds from the market in spite of the earlier promises by the government, 60 % of which should be aimed at developing the economy. I still do not understand, and I mentioned this at a number of forums, why the tenders were not announced yet for the purchasing of equipment and for the development of premises. The increase of GDP is very unlikely without the extension of the production capacities. If the companies can buy new equipment and machines lines, then they usually have to widen their product ranges too. The production could be increased directly by the former one, while the latter provides work for the construction industry, thus it also contributes indirectly to the increase of GDP.

Many people said: do not spend money on tidying up the settlements or construction of fountains, instead make sacrifices to secure hens that lay golden eggs. In spite of these desires no significant tenders were announced last year for such projects. Although some tenders of innovative nature were announced, which promised the possibility of purchasing equipment and the development of premises for the medium size Hungarian KKVs, but these remained promises only. Tenders of such nature should be announced in mass at the market within a short period of time in order that the industry - and consequently - the construction industry could start growing.

- Without the support provided by the tenders the players of the industry are unable to make progress with own resources, because they have depleted their resources during the crisis. Market players who have better conditions, who could be able to spend own resources for the development, are not very much eager to make development, because spending own resources means a serious loss of competitive power, because the sharing 35-60 % of the costs of really makes a difference.

- As a result, most of the companies are braced for starting, they are very eager to have the opportunity start the procurements, and to proceed with the associated construction efforts, thus increasing the capacity, the volume of production and the profit.

- I very much hope that the government is well aware of this situation, and they would be able to provide remedy for the ailing conditions. This could be a very healthy segment of the construction industry which would rely mostly on private funds. If EU resources are included, then the banks are more likely participate in the projects, which could ensure the own resources for many companies. I really do not understand what are we waiting for.

So the great boom is still not happening after the crisis? What is the situation with the revenues relative to the lowest level?

- Last year we had more work relative to the former period, and the increase continued this year also. By now we are able to reach double of the revenues prevailing during the crisis, and we slowly approaching the level of our best years. We see a possibility of growth based on the market demand, but certain obstacles exits, such as the lack of properly qualified workers. The situation is made worth by the fact that the capacities eroded during the crisis could not recover yet. For instance, the number of tower cranes in the country is not enough. Crane operators lost their new leased equipment during the difficult years. The demand for such equipment increased recently, but they cannot be provided quickly, therefore the demand is high, the result of the low capacity is the increase of prices. There are additional aspects worth mentioning: there is not enough skilled workers in this country for installing resilient and hard covering, for erecting buildings, most of them work in West European countries, they did not return yet.        

What are the consequences? What are the possibilities for the construction industry to have suitable number of properly qualifier workers?

Serious growth in the construction industry never happened in the world without plenty of inexpensive - or at least compatible - workforce. After the unification, Germany "imported" experts from Eastern Europe, while Dubai did the same from the regions of India, Pakistan and Asia. China attracted workers within its borders from the less developed areas to the stronger central region. We need to make sure that proper work force is available if we want to organise the Olympic Games and to construct nuclear power station. It can be seen that no sufficient free capacities are available within Europe. However, the presently ongoing large migration cannot be a solution for this problem. I do not see the migrants as a sources of well qualified, or at least qualifiable hard working people. The same way as Dubai did, we should open in the direction of India and Asia, and we should apply the well proven guest worker system instead of settling down people. Dismountable container towns were erected in Dubai, where temporary homes could be provided with acceptable standards for the people participating in the construction efforts. Upon completing the projects, the hostels were dismantled, and the workers went home with lots of money in their pockets. Such problems could be resolved with suitable control, even if such solutions seem to be somewhat alien to us. In such a transitional period the problems could be kept under control until the results of the recently initiated demographic incentives start to emerge, and cause positive effect regarding the increase of population and the increased number of qualified workforce.