Released on = May 17, 2007, 1:06 pm

Press Release Author = Mariusz Lubowiecki

Industry = Construction

Press Release Summary = The shortage of building materials has already commenced.

Press Release Body = Building boom started to become a rocky ground. The investors
who are about to build houses have to register themselves on the waiting list in
order to get hollow bricks, mineral wool or tiles. Unfortuanately, such a situation
does not seem to get better.
The number of buildings will be increasing at a quick pace and the companies
producing building materials do not want to invest in production uprating as they
are aleady afraid of a sudden end of the prosperity.
If the largest development companies have problems to purchase building materials,
it means the market is falling down. According to the latest news, the biggest
difficulties concern purchasing of building ceramics, that is material to build
walls.
However, individual investors are in much worse position at the moment. It seemed to
me that I was preventive so as in fear of lack of builders I managed to organize the
team in autumn. What for, if I cannot get all materials needed for work, and these
which are available are expensive by half comparing to last season, Mr Miroslaw
Kobielski says. He is currently building the single-family house near Gorzow
Wielkopolski.
Such a situation does not seem to get more stabilized. According to Central
Statistical Office (GUS), building production was increased by 75 per cent in
February (annual depiction) in Poland-so the number of material buyers is building
up. In this regard, Poland is a leader amongst other countries within European
Union. What is more we can keep the leadership for the next few years. There are
some reasons for that. Firstly, the number of building permit has increased in a
noticable way. Last year there was 45% more permit comparing to 2005. It means that
demand for building materials will be still growing.
Such a requirement will be extremely increased by the giant infrastructural
investments as they are to be be partly funded by EU. The investments are said to
appear in a quick pace just after granting the priority to organize 2012 UEFA
European Football Championship. As the result the lack of building materials will be
more raging in one year time.
The situation can get calmer if the supply gets bigger, but at the moment nothing
looks like improvement. According to the latest research conducted by Central
Statistical Office, the value of investment expenditure in the group of products
from remaining non-metalic raw materials, which includes inter alia producers of
cement, bricks and hollow bricks, decreased by 10 per cent. There are a lot of
closed brickyard and it is worth getting them off the ground. We are trying to
encourage producers of building materials to speed the investment up. So far without
any results, Mr Piotr Styczen, Undersecretary of Construction Department says.
Mr Ryszard Kowalski, the Chairman of Employers Association (Producers of materials
for building) claims that there are quite a lot of investments in some building
sectors. The investments are usually among producers of materials which are easy to
export, he adds. That is why there are new factories producing tiles, bathroom
fixture and glue for glazing.
Producers of hollow bricks or aggregates, which export is unprofitable because of
high cost of transport, are condemned to Polish market only.They are also afraid
that boom in building sector will finish as fast as it has started. We are not sure
how long this madness will last, Mr Ryszard Kowalski adds.
However, according to Maciej Gnoinski, such fears are unfounded. To catch up with
European standards, there should be 0.5 millions apartments appearing every year
within next two decades. The boom of building will last for many years-the member of
J.W. Construction board of directors announces. If the producers does not start to
invest, the shortage of building materials will intensify and it will slow the speed
of investmnt accomplishment. Undoubtedly, it would be economy that loses the most.

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