“The government must be as present as possible in this part of the economy (infrastructure i.e.). Investments in infrastructure have been the best solution in history during times of crisis and this is how it should be now, too. This is where the rebound of the other sectors that are now in free fall should start,” Cristian Erbasu told ZF.
Worst hit will be the construction of office buildings and malls, but the residential sector is not safe from decline, either.
“Some investments have been halted, construction sites closed, and companies had to send employees home. Everything may freeze at some point. Government funding is needed.”
More than 350,000 people are now working in construction in Romania, according Cristian Erbasu’s estimates. The number is higher than in 2018, because construction companies attracted new people last year following the wage hike introduced by Ordinance 114/2018.
Furthermore, the return to Romania of people who used to work in construction abroad could be an opportunity, too, Erbasu added.
Construction companies are trying their best to continue their operations as much as possible, taking all precautions, because a halt would completely upset their business plans.
“The construction sector is now collecting payment for work done in January or even last year. The effect of a decline in revenue would only show in a month or two.”
Cristian Erbasu’s construction business posted RON827 milion revenue in 2019. Early this year, Erbasu budgeted RON1.03 billion (EUR217 milion) revenue, over 20% more than last year.
(English version by Loredana Fratila-Cristescu)