Alarming: The number of Romanian builders left abroad is 700,000 and those from the domestic market 350,000

By Constantin Radut
The Employers’ Federation of Building Companies (FPSC) from Romania is one of the professional organizations most involved in the present and future economic of the country. The investments ensure sustainable development and create stability and balance in the progress of each nation. Starting with 2015, FPSC reunites most of the Romanian companies with activity in the civil and industrial constructions.
A dialogue with Adriana Iftime, director-general of the FPSC, argues for the launch of a more serious analysis on this vital field of the Romanian economy.
– We follow the national statistics, but also Eurostat statistics. We note that in 2019, Romania has the most dynamic increases in construction works in the EU. In July 2019, production in the Romanian construction sector was higher by 39.5% compared to July 2018, the most significant in the EU. Is this a positive signal?
– Before commenting on figures, I want to specify the following: the construction sector in Romania has been, in recent years – and I would like to remain this statement in the past -, in an area of shadow of the Romanian economy, which is abnormal in a country that needs a lot of investment. Official statistics show that, in recent years, the construction sector has recorded decreases in the area of public investments and increases in the area of real estate. Analyzing this situation, our federation appreciates that there are several causes that lead to these results: > the restricted access of the authorities to the European funds; > difficulties in drawing up the permits and authorizations; > unclear legislation in the field, with multiple possibilities for interpretation.
– And yet, in 2019, Eurostat shows what I have highlighted before.
-Our federation signed at the end of 2018 an Agreement with the Government of Romania that contains 19 measures that we consider to be a priority in order to have results. The agreement can be found on our website www.federatiaconstructorilor.ro. By agreement, the construction sector declared a “strategic” one of the economy for the next 10 years starting with 01.01.2019.
– Does this also mean an “unlocking” of public investments by local authorities and communities? Has the action created a new front for construction companies?
– The year 2019 continued the trend of the previous years but with a return on some public projects. We are in electoral years, 2019, 2020. It is important what will happen in the post-election period. Our Federation remains committed to implementing all the measures provided in the Agreement signed with the Government: professional certification of construction companies, amending Law 215/1997 – Law of the Social House of the Constructorior, as well as the other measures in the Agreement.
About 2020 it is difficult to talk about as long as Romania’s development strategies are deficient. Probably the real estate market will continue to be on trend, but you must know that the desire to buy a house must have as support the level of pay. For the moment the real estate market remains a strong speculative.
-If the volume of construction works increased, companies needed more workforce. Is there a labor market in the construction sector?
-As in other sectors of the economy in construction we have extraordinary constraints if not even a very important shortage of labor force. The main cause was determined by the migration of skilled workers to more attractive and expanding markets. Here is an undeniable argument: according to FPSC information, at present the number of Romanian workers in the construction sector abroad is about 700,000. In Romania there are only 350,000 employees in the construction sector. If 10% of those left abroad were to return, we could speak of a real success, but the realistic aim of our approach is to stop the so strong emigration of Romanians to the western markets.
In order to stimulate the young people to come to the site, but also to reduce the phenomenon of work “to black” but especially “to gray”, we asked for and accepted the increase of the minimum wage in constructions to 3000 lei gross and some fiscal facilities on salary, according to OUG114 / 2018. We can already talk about official results: on September 25 to those about 350,000 employees in construction were registered almost 60,000 new contracts.
– How do you look at the near future?
– If the authorities will not make the promotion of public investments a priority and will not launch new projects, then we will not succeed in bringing the construction sector to the “engine” of the economy, we will only remain an attractive market for real estate development. It’s just a matter of managing the country’s budget.