Master Manole wins the crisis and inflation. Constructions save the country

„The myth of the builder dedicating his life to the achievements that will last for many years from now on has never been more current. If we were to find an image that represents today’s Romania, that would be Master Manole. The construction field has pushed the country hard in all European statistics. And it has been doing so for many years, not from yesterday, ” stated for Q Magazine Laurențiu Țăranu, CEO of PORT SHIPPING & ENGINEERING (PSE), a company that operates as a port terminal and in civil and industrial construction, infrastructure and real estate development.

• Raed Arafat, pus sub acuzare pentru contrabandă
• Cristian Pîrvulescu propune un prim-ministru cu profil neutru / independent sau „un guvern cu un grad ridicat de independență politică”
• Bolojan: Vom iniția discuții cu USR, UDMR și grupul minorităților, pentru a clarifica prin ce formulă ar putea funcționa un guvern minoritar
• Era Tim Cook se încheie. Apple va avea un nou CEO din toamnă
• Raed Arafat chemat la Parchetul Militar

In a Europe where our country is among the leaders in many statistical indicators, in construction we are among the leaders of the continent: in the first quarter of 2022, our construction field has an increase of 6.5% compared to the same quarter of the last year and 9.5% compared to the previous quarter (4th quarter of 2021), which places us on the third place in Europe as a quarterly dynamic (after Slovenia, + 33% and Poland 13.7%) and on sixth place according to the annual dynamics of similar quarters (after other Eastern states – Poland, Slovenia, Hungary, the Czech Republic and after Finland). However, in both indicators we far exceed the European averages.

Industrial works carried out by Port Shipping & Engineering Photo Mihail Oprescu

In terms of time, Romania records the third best multi-year evolution in the European Union: + 38% compared to 2015, surpassed only by Hungary (+ 72%) and Slovenia (+63%):

And we have to admit that, after the pandemic, the construction field was the hardest hit field in the economy. All materials and raw materials have been dizzyingly expensive, from tripling the cost of concrete steel to tripling energy costs and doubling fuel prices. “Being able to produce and grow on such a market is, without a doubt, a remarkable performance”, thinks Laurențiu Țăranu.

And one more important thing to say: the average increase in constructions is due exclusively to private investors, who reported increases of 21% in residential buildings and 16% in non-residential buildings (especially office buildings). The state, in charge of engineering works, marked a decrease of almost 12% in its share of activity:

Indices of construction works-percentages-B-gross series, S-series adjusted depending on the number of business days and the season

So, here is one of the explanations for the economic growth in the first quarter of this year, growth in which our country was an European champion. Because “if many fields were disappointed, the evolution of the construction industry was the pleasant surprise of the spring” considers Laurențiu Țăranu.

Facing a market with sudden and dizzying increases in the costs of raw materials and materials, but benefiting from a slightly milder winter, Romanian builders have brilliantly capitalized on the vocation of Master Manole. The financial risks of rising prices and “tightening” demand have been offset by a smart planning and a better organization. “Obviously, the measures to encourage work in the respective industry were also very helpful” – adds Laurențiu Țăranu, not forgetting the significant contribution of the favorable fiscal regulations (exemption from income tax and part of social contributions plus raising the threshold for the minimum wage).

Laurențiu Țăranu, CEO of PORT SHIPPING & ENGINEERING (PSE) Photo Mihail Oprescu

And one of the great engines that propelled the Romanian constructions was the rediscovery of our country by the Romanian citizens and by the foreign tourists alike. The growing demand for domestic tourism, fueled by pandemic travel restrictions, has been an additional reason for the development of tourism infrastructure, which will prove to be a big “plus” in the years to come. More new and renovated hotels will increase the attractiveness of traditional domestic tourist destinations in the country, namely the mountain area and the coast. More Romanian tourists will be able to reach and enjoy these destinations, thanks to investments in recent years. And here’s how a big risk to our economy (pandemic restrictions) has been turned into an exploited opportunity, and those who have faced coronavirus investing in seaside and mountain accommodation will now reap the fruits of courage and wise decisions. And domestic tourism will continue to grow, bringing an even larger need for investment in Romanian resorts. “A true virtuous circle” – concludes Laurențiu Țăranu.

Anyone who reads today the figures that indicate the evolution of our domestic tourism in recent times cannot help but notice that Romanians have rediscovered their own country and are glad that they did.:

In March 2022, compared to March 2021, arrivals in tourist accomodation units have increased with 48,2% and the overnights with 55,6%

In March 2022, compared to March 2021, at the border points, arrivals of foreign visitors have increased with 265,6%, and the departures abroad of Romanian visitors with 96,5%

Arrivals and overnights in tourist accomodation units for March

*) Data below 0,5,**)By country of residence: data from the table are found in the xlsx file attached to the press release on the homepage 1) see the methodological rules annexed to the press release on the homepage

Tourism in March 2022 according to INS data

A 30% increase in the number of overnights could not have happened without the corresponding increase in the newly built accommodation spaces. And here is the virtuous circle of development, the new constructions enhance the increase in the number of tourists, which, in their turn, generate the need for new accommodation spaces, more and more stratified and more efficient in terms of value for money.