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The outlook for the end of 2024 and 2025-2027 is promising5 min. de citit

How has the market you operate evolved this year? (price trends, demand, supply, competition etc.)?

Cătălin Podaru: In 2024, the Romanian construction market experienced a positive evolution, influenced by several key factors. Although there was a slight decline in the residential construction sector in the first four months of the year, caused by delays in launching new projects and a decrease in building permits, the engineering construction sector (highways, bridges, viaducts, overpasses) saw remarkable growth driven by European funds.

Major infrastructure investments and a strong focus on modernization, supported by government initiatives and European funds, were significant drivers of the engineering construction sector’s growth. We expect this expansion to continue, considering that the outlook for the end of 2024 and the 2025-2027 period is optimistic, with a forecast of stable and sustainable growth.

Romania benefits from a substantial budget of 70 billion euros for development through European funds via the Cohesion Policy, the National Recovery and Resilience Plan, and the Anghel Saligny National Investment Program, which will further stimulate the construction sector.

The competitive dynamics in the market remain influenced by the necessity to adopt advanced technologies and sustainable construction practices. Challenges related to the shortage of specialists and rising material costs require continuous adaptation and process optimization. Thus, adapting to new economic realities and maximizing opportunities offered by European funding will define the course of the Romanian construction market in the next period.

What were the main aspects that influenced your activity?

Cătălin Podaru:The process of digitalization and automation of workflows have positively influenced our activity at Leviatan Group, while the current economic context has brought a series of challenges.

Our group of companies, which includes Leviatan Design, Ubitech Construcții, eConfaire Immersive Design, and Copraag Entrepreneur, all with 100% Romanian capital, provide comprehensive construction services using the latest technologies, with a core focus on the continuous improvement and automation of internal processes.

The outlook for the end of 2024 and the period from 2025 to 2027 is optimistic. eConfaire Immersive Design, our research and development division, supports the implementation of advanced parametric design solutions and 3D modeling, which have significantly streamlined our processes. This led to increased precision in project execution and cost reductions, contributing to better resources and time management.

However, this year’s economic conditions have presented multiple challenges. These include rising material prices and supply chain difficulties, which have pressured project execution and planning. Additionally, the shortage of specialists in the construction sector has exacerbated these challenges, and the necessary salary adjustments to remain competitive have added further pressure on our cost structure.

All these elements have significantly shaped our activities this year, requiring continuous strategic adaptations and careful resource management to successfully navigate this dynamic economic and technological landscape.

How do you evaluate this year’s performance compared to that of last year?

Cătălin Podaru: In 2024, we have built upon the progress of 2023, leading to significant developments for both our companies and the Romanian construction industry..

Compared to the previous year, 2024 has shown notable growth and development in our strategic initiatives. We have continued to implement and develop projects that integrate sustainable solutions and modern technologies, increased efficiency, and completed work within the established deadlines.

The Romanian construction market followed a growth and innovation trend like last year, reflecting significant progress and alignment with global standards and expectations. The industry has been stimulated by increased interest in sustainable practices and an optimistic economic growth outlook in the construction sector. These trends have facilitated the development of modern infrastructure and encouraged the implementation of advanced technologies in projects, thus laying the foundation for a sustainable future in the construction sector.

Therefore, compared to the previous year, we can characterize the first months of 2024 by consolidation and progress, during which we successfully overcame various challenges and capitalized on multiple opportunities, allowing us to maintain our competitiveness.

What are your most important achievements this year?

Cătălin Podaru: In 2024, our main achievements reflect strategic growth, both in the expansion of our project portfolio and in the consolidation and growth of our team.

This year, we have advanced in expanding our portfolio with three major projects:

Cluj Regional Emergency Hospital: The contract, signed by Ubitech Construcții for the first phase of the project, includes site organization works, earthworks, diversion of utility networks, and setting up temporary access routes, construction of a watertight enclosure of molded walls, retaining walls made of drilled piles, as well as preliminary works for the extension of site organization in the second stage of the project, scheduled to be put out to tender, for the actual construction of the hospital.

57th Air Base “Mihail Kogălniceanu: The project, contracted by Leviatan Design under the NATO Support and Procurement Agency (NSPA) public procurement regulations, includes the design of new storage and maintenance facilities for military equipment. These constructions are essential for strengthening Romania’s defense capabilities and supporting NATO operations in the region.

Building Seismic Risk Consolidation in Bucharest: Following the signing of a framework agreement with the Municipal Administration for Seismic Risk Building Consolidation, with an estimated value of over 60 million lei excluding VAT, Leviatan Design will provide services including energy auditing services, prepare or revise technical-economic documentation and provide technical assistance for the consolidation of buildings in Bucharest.

Simultaneously, we have aimed to expand our team and invest in a continuous internal development program. This strategy has allowed us to handle some of the most difficult requirements in the construction industry and to effectively manage the challenges of this sector.

Additionally, among our achievements this year is the intensification of the digitization and automation of work processes. This strategic direction continues at a rapid pace, marking a crucial accomplishment in adapting to market demands and improving operational efficiency. We continually invest in advanced technologies and team training to utilize these tools, allowing us to manage projects more efficiently, reduce errors, and accelerate execution times.

These accomplishments highlight our commitment to excellence and innovation in the construction sector, as well as our dedication to ensuring sustainable and responsible growth.