“I am convinced the market will grow in 2021, even though the first quarter may turn out to be rather difficult due to the rise in steel price,” says Jaroslaw Turczynski, CEO of Polish-held Blachotrapez Romania.
This may cause problems for smaller companies, which are not prepared for such raw material price fluctuations, but the large companies with significant funds will consolidate their position on the market, he added.
Blachotrapez has two plants in Romania, in Baia Mare and Ploiesti, with a total production capacity of 7 million square meters of roof tiles a year and plans to make new investments in 2021.
Roofing maker Bilka Steel in Brasov, held by entrepreneur Horatiu Tepes, is optimistic, too.
“The decline in construction permits for residential buildings in 2020, along with the high-risk perception of consumers will have effects on the roofing market, as well. The roofing market will most likely go beyond last year’s level, but not significantly, we estimate slight growth of 5% in volume. Growth will be higher in value, but that is because of the rise in raw material prices first of all,” Horatiu Tepes says.
Rural areas can be an important factor in the development of the roofing market, other actors say.
“We believe the market will continue to grow, driven by renovation and internal migration, mainly to rural areas. An important thing we are considering is the customer shift in preference towards premium roofing solutions,” says Adrian Minuta, CEO of manufacturer Bravo Europa.
Bravo Europa has two plants in Romania and Czech Republic, a logistics platform in Germany and two representative offices in Austria and Bulgaria.
Preference for premium products is what Cristian Matasel, general manager of Metigla Romania, talks about.
“We expect minimal growth of the market, mostly of premium products.”
Th company he runs has a plant in Ceptura, Prahova, and is about to complete a EUR6.6 million investment started in 2018 to expand production and storage space by 5,000 square meters, implement a state-of-the-art ERP solution and purchase new fully automated equipment.
“The roofing market will take small steps towards a perfect balance between new builds and renovation,” believes Andrei Sulyok, general manager of Lindab Romania.
Customers will take more time to compare offers and most often decide to have their roof replaced only if they really need to, he added.
Building roofing market stood at EUR237 million in 2019, an increase of 10% on the previous year, according to Neomar Consulting Data. In 2009, it stood at EUR125.9 million, so it increased by 88% in a decade.
(English version by Loredana Fratila-Cristescu)