Increased costs, stricter credit guidelines, higher loan rates – this toxic mix caused a dramatic decrease in new construction projects. In the meantime, the desire to build is flaring up again. However, the market has changed, which also confirms Walter Eder of the Masonry Eder.
The reversal of the trend has been done, the question and especially the allocation of residential loans have again been attracted – the bosses of the domestic banks have known that in recent weeks. A fact that is already reflected in the construction sector.
“You can now see clear signals that indicate a stable development in residential construction,” says Walter Eder. The director of the Eder Brickworks, located in Peuerbach, looks back on two very difficult years. How did the operation gained this phase? “We have adjusted the production capacities and used the time intensively for product developments, so that we can optimally cover the emerging changes if necessary,” he says.
The company currently employs 250 people – this number was kept relatively stable, even despite the strong decrease in the new construction area. Eer speaks about “only small changes” and explains this: “We used the existing employees within the group where the current need was given.” Eder includes bricks processing in Peuerbach and women, plus four transport-concrete plants and a system construction area that also stands for ready-made stairs, double wall systems and the like.
The dream of your own house is still omnipresent. Changes mentioned here: “The trend is clearly in the direction of compact construction with fewer space in charge.” Means: smaller is being built. This in turn reduces the total investment costs. High quality building materials prove themselves because this is declining.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
