A new report by data group Frost & Sullivan suggests construction chemicals suppliers should encounter buoyant markets in central and eastern Europe (CEE) and in the Commonwealth of Independent States (CIS) for several years ahead.
COnstruction took a massive hit in CEE during the downturn with many projects grinding to a halt or never breaking ground as financing collapsed. With confidence returning it could be that banks are lending again, and growth returning to the sector.
Analysts at Frost & Sullivan said revenues from the CEE and CIS (excluding Russia) construction chemicals and building materials market should grow from approximately zloty (Zl) 5.9bn ($2.1bn, €1.5bn) in 2010 to around Zl7.7bn in 2017, according to an ICIS report.
The consultancy said drivers for the market would include EU energy saving directives, which would boost the foam insulation materials market for many years to come, and the infrastructure building requirements for the Euro 2012 UEFA European Football Championship, which is to be held in Poland and Ukraine.
Poland alone currently accounts for roughly one third of the market’s revenues, Frost & Sullivan said. Looking solely at the CEE, Frost & Sullivan described the region’s construction chemicals and building materials sector as “highly competitive” with domestic companies accounting for around one fifth of accrued revenues, with international suppliers accounting for the remaining four fifths.