BMI's Executive Summary

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Poland's economy has picked up since EU accession in 2004. Assisted by a rise in the value of industrial output, and the competitive advantages conferred by the structural reforms programme, Polish industry has begun to show signs of sustained recovery in 2007. During January-May 2007, the number of new residential construction starts increased by 54.5% y-o-y. Today, there are over 300,000 construction enterprises active in Poland. There has also been an influx of foreign contractors in recent years, with German contractors having, by far, the largest presence in the country.

Infrastructure in general, and the transport segment in particular, comprises the prime area of focus for the Polish government in preparation for the EURO 2012 Football Championships which are being co-hosted with Ukraine. Here, more than US$40bn is expected to be spent on construction and repair of roads, motorways and expressways alone over the forecast period. Other key projects underway in Poland include the high-speed railway from Lodz to Warsaw, and the Rail Baltica project. Also, with an estimated housing backlog of 1.5mn units, the government is committed to increasing spending on new homes.

However, a few areas of concern can still be identified and probably the most important among them would be the shortage of skilled labour and the rising wage bills that go with it. Increasing prices of building material may also prove to be a hindrance in the medium term. EU accession also has its downside: VAT on building materials has increased from 7% to 22%, adding substantially to the cost of construction. Also, in spite of visible changes, overseas investors continue to complain of complex government regulations and lukewarm government support.

In a bid to spur construction activity, the Polish government had decided to refund 15% of the VAT due on building materials purchased between May 1 2004 and December 31 2007. Ultimately, the country has huge potential for infrastructure development. BMI forecasts the industry to log an average growth rate of 4.04% over 2008-2012 to reach a value of US$111.63bn by the year 2012.

Contents

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Chapter 1 – Industry Trends And Developments

Market Overview

Poland's Economy In 2006–2007

Poland's Construction Industry In 2006

Major Companies

Some Recent Investment Initiatives

Chapter 2 – Key Projects

Transport

Utilities

Residential And Commercial Construction

Table: Poland — Major Infrastructure Projects

Table: Poland — Major Infrastructure Projects (continued)

Chapter 3 – Business Environment

Introduction

Business Attractiveness Rankings — Methodology

Breakdown Of Ratings

Breakdown Of Components

Regional Overview

Poland: Business Environment Ranking

Politics — Long–Term Risk

Economics — Long–Term Risk

Competitive Environment

Anticipated Sector Growth

Chapter 4 – SWOT Analysis

Poland Infrastructure Industry SWOT

Poland Economic SWOT

Poland Political SWOT

Poland Business Environment SWOT

Chapter 5 – Industry Forecast Scenario

Table: Poland––Infrastructure Industry Forecast

Risks

Chapter 6 – Macroeconomic Outlook

Table: GDP, Output And Population

Chapter 7 – Competitive Landscape

Table: Key Players — Polish Construction & Engineering Industry

Chapter 8 – Company Monitor

Budimex

Mostostal Warszawa

Skanska Poland

Hochtief Polska

Chapter 9 – BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Competitive Landscape for Europe Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of European Infrastructure Sources

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BMI's European Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, infrastructure industry associations, chambers of commerce and company reports. Information sources include: