The value of road building projects in Poland will exceed € 7,5 billion this year, up +25% on 2010, and road construction output is forecast to continue to grow from 2015 to 2020, according to research company PMR.
However, following growth of more than +40% in the first six months of this year, the second half is forecast to see a moderate slowdown in construction output, while the value of projects will decline from 2012 to around € 4,7 billion in 2014 as a result of a lower number of large projects under construction.
But PMR researchers said output would start to grow again from 2015, driven by Poland's positive financial outlook up to 2020 coupled with sustained investment in the sector from the government's General Directorate for National Roads & Motorways (GDDKiA).
Bartlomiej Sosna, senior construction analyst at PMR, said increased investment spending in Poland's power construction industry was expected to be a key long-term driver of growth for the country's construction market.
"A large number of power construction projects scheduled after 2013 would greatly enhance books of orders of the major civil engineering construction companies. As a result, these companies would be able to employ medium-sized providers of road construction services as subcontractors in future road work contracts," Mr Sosna said.
Mr Sosna also highlighted the many delays that Poland has experienced in the implementation of projects related to Euro 2012 football tournament, and pointed out that such setbacks might actually end up benefiting the sector in the medium term.
"As a result of delays in the implementation of road projects, the road construction market will be less exposed to a shock resulting from a fall in the number of new large road construction contracts expected in 2013," Mr Sonsa said.
According to PMR, it is unlikely that Poland's expenditure on national road construction in Poland will fall back to levels recorded before 2007 when GDDKiA's spending was less than € 2,5 billion per year.
But since spending on national road investment projects is forecast to fall after 2012, Poland's local road reconstruction programme, which will be continued from 2012 to 2015, will gain more significance.
"The fact that the programme will go on is very good news, especially given the anticipated reduction in the number of large road construction contracts. It is possible that local contracts will increasingly attract large construction companies which have access to free capacity in a given region," PMR said.