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ANALYSIS: The recession in Q1 undermines the companies' effort
English Section Publicat de Ovidiu Stefanescu 03 Sep 2014 09:53
As in the same period of 2013, but with more serious effects, the national economy entered into technical recession. The relevant indicators reflect the uncertainty and aridity of the local business environment, the only solution for most companies operating on the market of insulating joinery being the external deliveries. Moreover, the harmful effects induced by the political and social instability (given the proximity of the election period), in conjunction with the stagnation of public investment and directing funds to other areas exacerbated the economical crisis, with negative effects on construction sector, which has a direct consequences for windows industry. In this context, the most optimistic variant for the managers of companies of the analyzed sector is to try a stabilization the sales in the second half of 2014, taking in consideration that the turnover of the first six months of this year decreased compared to the same period in 2013. Although the so-called favorable season for window sales is started - and should normally provide new opportunities for specialized companies - the low level of demand is one of the main reasons for the fluctuation of orders carpentry. Thereby, more and more companies, including system suppliers, are reorienting to supplement the revenues from exports. For the current year, is expected the preservation of the the aggregate value of orders to the level registered in the previous 12 months, when 554 major manufacturers (including a broader list of specialized firms active in the marketplace) recorded a decrease of 6% of incomes (expressed in euro) compared to 2012. Although the cumulative value of these figures do not fit the exact amount of the entire market, the group of 554 manufacturers reported an official turnover of 774 million euro, less compared to 2012, when they recorded 825 million euro. From the level in 2008 of 1.01 billion, their sales have fluctuated strongly in 2009, registering a decrease of 14% to 757 million euro, followed in 2010 by another depreciation of 1% (756 million euro), a slight recovery in 2011 (+ 14% to 860 million euro), and new decrease in 2012 (-4% to 825 million euro) and another shrink of 6% reported last year (774 million euro).
 
 
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