What does the future hold?
2020 was a special year for Unibep SA, marking was 70th year in operation. During that time, we are proud to have grown into one of Poland’s biggest construction companies. We are proud of our history, our projects and our team. Unfortunately, the anniversary celebrations we had been planning for more than a year, along with many other events and festivities, have had to be cancelled due to the coronavirus. This is a shame, but it does not diminish our optimism about the company’s future.
Unibep finished 2019 on a strong note, and we started 2020 with an ample financial cushion and a solid backlog of orders. We have plenty of work and cash at our disposal. I should also stress that since the beginning of March, when the first cases of the virus were officially confirmed in Poland, all domestic and foreign operations in the Unibep group – including at our modular housing factory in Bielsk Podlaski – have continued without serious disruption. We have also experienced no difficulties with subcontractors.
What does the future hold? The construction business has shown great resilience amid swiftly deteriorating economic conditions. But let’s not delude ourselves – the economic collapse that has accelerated in recent months will not spare our industry. It should be noted, however, that the impact of the crisis will not be evenly spread. Contractors who deal mainly with the public sector will be less affected than those dependent on private investors.
While I do not foresee any major declines in housing prices, developers will have to adjust supply to new market conditions. It is not simply that we will be dealing with fewer potential buyers; we can also expect a more time-consuming permitting process as government offices adopt new health and safety procedures. The forthcoming weeks will also tell us more about what direction mortgage lenders will take.
My view is that the pandemic’s negative impact on corporate revenue in the construction sector will make itself felt only in 2021. Over the next few months, current projects and robust order books will keep contractors busy. As yet, there have been no signs that ongoing investments will be cancelled.
Author:
Leszek Gołąbiecki, President of the Management Board, Unibep SA
Last Updated on March 17, 2021 by Karolina Ampulska