Construction chemicals market expected to grow 6% in 2016

More information on this topic is presented in the PMR report:

Following better-than-expected performance in 2014 (a 2% increase rather than a 1% drop), in 2015 the construction chemicals market reported growth of approximately 5%, with the segments of masonry mortar and thermal insulation systems being the strongest growth drivers.

 

According to PMR’s latest report entitled “Construction chemicals market in Poland 2016 - Market analysis and development forecasts for 2016-2021”, the construction chemicals market’s growth can accelerate to 6% year on year. Moreover, the upward trend should also continue into 2017. In addition to an upturn in the residential construction segment, a strong stimulus for the the construction chemicals market will come from the industrial construction and agricultural construction segments, whose growth is poised to accelerate. Combined, these segments represent almost two-thirds of total non-residential floor area. Furthermore, the popularity of ready-mix mortar offered by manufacturers is also expected to increase further. However, declines are likely to take place after 2017, mostly in the wake of a reduced number of residential projects. Still, the fate of the construction chemicals market in the years following 2017 will mainly depend on the new government’s residential development policy.

The outlook for residential construction is very positive on the back of high sales of new flats built by developers in 2015 (up by over one-quarter) and a recovery among individual investors (6% growth in housing starts and a 15% surge in building permits). After the market reached 14 million m² in 2015, we expect the annual area of new projects to increase to 16.5 million m² in the 2016-2017 period.

As every year, the surveyed renovation and construction companies were asked about their current financial standing, the expected financial positions in the next 12 months, the value of the backlog and their headcount. Based on responses we receive, we are able to prepare the Confidence Index for the Polish construction chemicals market. In the December 2015 survey, the Business Conditions Index for the construction chemicals industry in Poland stood at 25.1 points, which signifies improvement over 2014.

 

 

A comparison of the Business Conditions Index to the Corresponding Index (published for over 10 years based on the same set of questions) for the 200 largest construction companies operating in Poland reveals that, once again, the situation in the construction chemicals sector is better than in the construction market as a whole. However, the gap tends to narrow down from year to year. The trend is primarily driven by a fast-paced recovery of the construction market after the crisis years of 2012 and 2013 during which the civil engineering construction segment was hit particularly hard.

 

 

Methodology of the survey conducted for the purpose of the reportFor the fourth time, PMR carried out a computer-aided telephone interview (CATI) survey of a randomly drawn sample of renovation and construction companies for the purposes of this report in December 2015. The survey was conducted by interviewers working in the company’s internal CATI Studio.

A sample of construction companies classified according to the PKD 2007 classification under Group 41 (Construction of buildings) and Group 43 (Specialised construction activities) was drawn from a contact database obtained from a leading B2B data broker.

 

We adopted a definition of the construction chemicals market as the total scope of work related to:

- the installation of ceramic tiles and other types of cement or stone cladding

- masonry work (construction of walls from bricks, hollow blocks, blocks, etc.)

- installation of thermal insulation systems

- laying of floor screed and base layers

- traditional thick-coat interior and exterior plastering.

 

*For each of the five sets of questions, 100 interviews were conducted.

 


More information on this topic is presented in the PMR report:
Construction chemicals market in Poland 2016. Market analysis and development forecasts for 2016-2021