Lower economic growth, weakening
residential construction and slower development of non-residential
construction will soon bring about a sharp slowdown in the growth of
the roofing materials market in Poland. A more abundant supply and
increased competition are likely to reduce the prices of roofing
products. As a result of slower growth of the Polish economy
and adverse developments in the financial markets preventing access to
funding for housing projects, after the excellent years 2006-2008, the
following three years (2009-2011) will witness slower growth of the new
construction projects and thereby of the roofing materials market in
Poland. In its latest report entitled “Roofing materials market in
Poland 2008. Development forecasts for 2009-2011” PMR, a market
research company, estimates that the market measured in the area of
roofs will grow at the average annual rate of not more than 6-8%.
Thanks to a considerable contribution from the single-family
construction segment, the market of roofing materials used in
residential construction will be affected by the financial markets
turmoil and mortgage lending restrictions relatively mildly, and with a
delay. In addition to residential construction, which accounts for the
largest part of the roofing materials market, industrial and warehouse
construction, which is the second largest market segment, will be
reporting a lower rate of growth, which is evidenced by the reduced
growth in the number of building permits issued. However, the sector of
public buildings should develop at a fast pace, but still it is too
small a segment to have any significant influence on the growth of the
market as a whole.
PMR estimates that the segment of roofing materials for the
modernisation of the existing buildings will be growing at a faster
rate in the upcoming years, which is typical for periods of subdued
economic activity in the construction sector.
“The roofing materials market in Poland will continue to develop but at
a slower, single-digit rate, as compared to 2006-2008. However this
development should not be seen as a crisis or a collapse but rather a
stabilisation of the market at a very high level, which will let
manufacturers of building materials continue to develop further”, says
Bartłomiej Sosna, a Construction Analyst from PMR. Additionally, the
market will see increased competition as weakening economies of Western
European countries will offer fewer possibilities for exports of
roofing materials produced in Poland. However, it is highly likely that
Poland, which next to Romania is one of the most rapidly growing
European construction markets, will receive more roofing products
manufactured by western producers. That may increase competition among
the domestic producers and distributors, and consequently bring the
prices of roofing materials down.
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