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Construction industry turnover could climb 9-10% in 2021

Construction

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Construction industry turnover could climb 9-10% this year, state news wire MTI reports, citing a survey of 400 companies by professional association ÉVOSZ.

About half of companies expect no significant improvement this year from last year, when turnover fell 9%, ÉVOSZ said.

Around 78% of companies said a shortage of skilled labor still poses problems. Companies also indicated that a significant reduction in the practice of paying workers under the table has yet to become apparent.

Close to one-fifth of companies, mostly in home construction, said their order stock exceeds capacity at present.

Companies acknowledged the pickup in demand for homes driven by a reduction in the VAT rate for home construction and a later deadline for meeting building energy efficiency requirements, but said industry capacity must be expanded to keep the sector on the upswing.

About half of companies plan to make more hires and raise pay. Pay rises are expected to reach 4-5%, under last year's average increase of 9%.

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