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Information on civil engineering in the Czech Republic | |||
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The Czech Construction Industry 2001
CONSTRUCTION MARKET The construction industry is one of the most important branches of the Czech national economy. In the 90's it formed approx. 7 per cent of the gross domestic product and approx. 7-9 per cent of all labour force worked in construction. The number of firms and the labour force reflected characteristic features of the Czech economy of respective times. In years 1918-1939 there were some 22,000 construction firms with approx. 300,000 persons as at the end of the 30's. The greater part of firms were small enterprises - the mean number of employees was 20 employees per 1 enterprise. In the 50's all private firms were nationalized. The "national enterprises" for general construction (residential buildings, non residential industrial or non-industrial buildings, civil engineering and hydraulic work) worked under the top management of the Ministry of Construction. A profound change has occurred since 1991 thanks to the privatisation and economic transformation: large state enterprises were transformed into smaller private firms and new private firms were established. In December 1999 more than 200,000 firms with prevailing construction activity (corresponding to Division 45 of the NACE-CZ Classification) i.e. "construction firms" were registered by the Czech Statistical Office (CZSO). In December 2000 the number of these firms reached 221,417 entities, both firms of individuals or businesses. I.e. 10.8 per cent of all registered bodies. The number of construction firms raised by 12,274 bodies in 2000, i.e. by 5.8 per cent. The growth fell down by one half when compared with 1999. The number of firms of individuals grew up approx. by 9,500. The number of limited liability companies grew up by 1,164 companies (i.e. +9.7 per cent) or the number of joint stock companies by 58 companies, i.e. +8.1 per cent. There were 13 new co-operatives (i.e. 3.4 per cent), on the other hand the number of state enterprises fell down by 15 firms. The highest number of construction firms with 20 or more employees was achieved in 1998, i.e. 2,408 firms. In 1999 or 2000 this number fell down reflecting the decreasing demand for construction work and an uneasy position of construction firms.
OUTPUT and PRICES of CONSTRUCTION WORK
OUTPUT The real growth of output reached approx. 250-350 per cent during the period 1948-1990. After 1998 the real output was falling down till 1993 in consequence of transformation of the economic system in the Czech Republic. From 1994 to 1996 the output grew up by approx. 20 per cent. In years 1197-1999 the real output fell down again, first by -4, then by -7 or by -6.5 per cent respectively. Year 2000 was the year of economic revival and the output grew up by +5.3 per cent. Output - constant prices bill. CZK 1990 = 100 previous year=100 1990 165.8 100.0 - 1994 142.7 86.1 107.5 1995 154.7 93.4 108.4 1996 162.8 98.3 104.7 1997 156.4 94.3 96.1 1998 145.4 87.7 93.0 1999 135.9 82.0 93.5 2000 143.0 86.3 105.3 The output at current prices raised constantly since 1190 to 1998 thanks to the growth of prices. In 1999 the crisis of construction industry reflected this indicator too by -2.4 per cent when compared with 1998. Thanks to the revival the output of construction work at current prices grew up by 9.3 per cent in 2000. Output - current prices bill. CZK 1990 = 100 prev.year = 100 price index 1990 72.5 100.0 - n/a 1991 77.9 107.5 107.5 n/a 1992 103.4 142.6 132.7 111.4 1993 118.9 164.0 115.0 125.8 1994 142.7 169.9 120.1 114.0 1995 171.7 236.9 120.3 110.9 1996 200.8 275.7 116.4 111.3 1997 214.5 296.0 106.8 111.3 1998 217.4 300.0 101.4 109.3 1999 212.2 292.8 97.6 104.8 2000 231.9 320.0 109.3 104.0 This positive trend continued in 2001 as well. In January - March the output of construction work reached 24.315 bill. CZK and the growth rate reached +14.4 per cent at constant prices or +17.9 per cent at current prices, when compared with the previous year. More than 80 per cent was produced by firms with 20 or more employees. Smaller firms produced approx. 15 per cent of the total output. The percentage of output is rather low, when compared with the percentage of number and labour force of these firms or in comparison with other European countries. New construction works, incl. reconstruction or modernization, was dominant. The percentage of repairs and maintenance fell down in the 1st half of the 90's and their percentage reached approx. one third of all work. Construction work abroad was less important when reaching approx. 1 or 2 per cent. Civil engineering was the most important and growing sector for several years - its percentage reached approx. 25 per cent in 1992 or more than 33 per cent in 1999. The sector of non-residential industrial buildings was the second one (approx. 30 per cent). The percentage of non-residential non-industrial buildings fell down: approx. 33 per cent in 1994 or 20 per cent in 1999 reflecting the saturation of demand. Significant change occurred in housing. The percentage of new residential buildings fell down dramatically after 1990. In 1998 it grew up reaching more than 15 per cent. PRICES Reflecting the general growth, a steep growth of construction work prices took place after 1990. Particularly in 1191 or 1992, approx. +37 per cent p.a. Since 1993 the growth rate was milder: approx. + 11 per cent in 1996 or 1997. Reflecting the decrease of demand and relative surplus of capacities the growth rate has fallen down since 1998 and reached +9.3 per cent in 1998, +4.8 per cent in 1999 or +4.0 per cent in 2000. Price indexes 1992 1993 1994 1995 prev. year=100 111.4 125.8 114.0 110.9 1996 1997 1998 1999 2000 111.3 111.3 109.3 104.8 104.0 At the beginning of 2001 (January-March) the growth rate raised up to +4.8 per cent reflecting the revival of demand. LABOUR FORCE
EMPLOYMENT Construction industry is one of most important "employers", in despite of the lower percentage of labour force employed in construction firms in last years - 9.3 per cent at end of 2000. The percentage of labour force employed in construction industry comparable with e.g. Italy, Portugal. Germany, Austria or Switzerland. When compared with 1999 the labour force fell down in industrial branches, construction or agriculture. In public administration or in services the fall was milder or the number of employees grew up. In construction the average number of labour force fell down by -4,200 persons, i.e. by -0,9 per cent. This fall was steeper by 0,7 point in comparison with the total labour force fall in civil sector. The variations of number of employees reflected the economic position of the construction industry. The fall in the last years reflected - the lower demand for construction works - the transformation of construction firms and - the growth of the productivity of labour. Employees in the construction industry (Results of the sample research of labour force, Oct.-Dec.2000) Number Previous year=100 As % of all employees 1990 402.5 - 7.5 1991 404.0 100.4 n/a 1992 408.0 101.0 8.3 1993 423.9 103.9 8.7 1994 451.7 106.6 9.2 1995 455.4 100.8 9.2 1996 467.5 102.7 9.4 1997 480.9 102.9 9.7 1998 472.0 98.1 9.7 1999 443.2 93.9 9.3 2000 439.0 99.1 9.3 WAGES In the Czech Republic the average nominal monthly wages raised by 6.1 per cent in 2000. This growth rate was milder by 1.2 point in comparison with 1999 or by 2.2 point when compared with 1998. Highest wages and the highest growth rate (+9.4 per cent) were reached in the sector of banks and insurance companies. These were more significant differences among single branches when compared with 1999: in 2000 137.8 points, in 1999 116.9 points. Average nominal monthly wages in construction did not reach the average level of all branches (by -0.2 points; in 1999 the level of wages in construction firms exceeded the general level by l.6 points). The annual growth rate in construction did not reach the general growth rate by -1.8 point in 2000 (in 1999 by -2.5 point).
PRODUCTIVITY of LABOUR
Firms with the following number of employees 20-24 25-49 50-74 75-99 100-199 PoL 484.9 525.3 593.0 590.5 757.9 1999=100 95.9 103.6 105.6 102.6 107.3 200-299 300-399 400-499 500-999 more 898.4 739.7 646.6 737.1 1,172.2 113.1 103.7 110.9 112.0 134.6 Note: PoL=productivity of labour at constant prices (1994), 1,000 CZK By sectors, the highest growth rate was achieved by firms in foreign control (by +25.5 per cent). By other private firms by 10.8 per cent or by public firms 4.2 per cent. The productivity of labour of households fell down by 1.5 per cent. The growth rate of the productivity of labour exceeds the growth rate of nominal monthly wages by almost 6 points (in construction firms with 20 or more employees). It means a significant positive turn of previous trends.
BUILDING MATERIALS SECTOR
Quarrying and preparation of aggregates
Quarrying and preparation of sand
Manufacture of ceramic tiles
Manufacture of bricks, burnt roofing and stoneware used in construction Manufacture of cement, lime and plaster Manufacture of elements made of concrete, cement and plaster Natural stone manufacture Manufacture of other mineral non-metal products
Productive technologies were brought up-to-date thanks to the privatisation and to inflowing investments by foreign majority shareholders.
by sales BEST, a.s. Calofrig,a.s., Borovany Cembrit Bhemia, a.s. Cement Hranice, a.s. Cementárny a vápenky Prachovice, a.s. CIDEM Hranice, a.s. Českomoravský cement, a.s. Chlumčanské keramické závody, a.s. Kámen Zbraslav, s.r.o. KERAMOST, a.s., Most Knauf Praha, s.r.o. Kotouč Štramberk, s.r.o. Lafarge Cement, a.s., Čižkovice RAKO, a.s. Rakovník Sedlecký kaolín, a.s. Sedlec Sklopísek Střeleč-EXIMOS, a.s. TARMAC Severokámen, a.s.,Liberec Wieneberger Cihlářský průmysl, a.s. ZAPA Beton, a.s. Železniční a prům.stav.výroba Uh.Ostroh, a.s. Nominal monthly wages grew up by 1,175 CZK and reached 15,940 CZK in 2000. Wages increased in all sector of silicate building materials, particularly in "manufacture of cement, lime or plaster". Wages in this sector reached 22,784 CZK and exceeded average wages by 42.9 per cent. The productivity of labour (of value added) grew up in all sector in 2000. In average by 8.5 per cent. The average growth of productivity was exceeded in "quarrying and preparation of sands", "manufacture of refractory", "manufacture of cement, lime and plaster" and "manufacture of concrete, plaster or cement".
Productivity of labour (of value added, 1,000 CZK)
1999 2000 1999=100 Quarrying and preparation of aggregates 270.1 270.6 100.2 Quarrying and preparation of sand and clays 589.6 654.2 111.0 Manufacture of refractory 298.9 376.7 126.0 Manufacture of ceramic tiles 624.6 674.5 108.0 Mnf. of bricks, roofing and stoneware for constr. 603.8 646.3 107.0 Manufacture of cement, lime and plaster 1,585.8 1,784.6 112.5 Mnf. of elem. made of concrete, plaster, cement 499.1 542.8 108.8 Mnf. of other mineral non-metal products 483.4 497.5 102.9 T o t a l 649.0 704.3 108.5 | ||||
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