Industry news
Making engineering a sexy career
The conference Portfolio Construction Industry 2025 conference, which focused on the challenges and opportunities facing the construction industry. In the closing discussion, key players in the sector sought answers to the most important questions.
In addition to discussing current topics such as the rise of artificial intelligence and developments in the economic environment, special attention was also given to housing construction. László Koji, who was recognised with the Personality of the Year in Construction award, László Koji, president of ÉVOSZ, emphasised:
"housing may be the positive breakout point, but we see that last year only 13,000 homes were built, and this year even less than that may be built."
The panel discussion on the difficulties facing the construction industry was moderated by Gergely Ditróy, Business Development Director at Portfolio Csoport. Participants: István Derczó, managing director of Weinberg "93 Építő Kft., Tibor Massányi, managing partner of DVM Group, Gábor Papp, managing partner of Stratos Magasépítő, and Dr. Csilla Rázsóné Szórádi is the managing director of Újház Zrt. and András Wolf, technical CEO of Market Építő Zrt.. We have compiled the most interesting points from the discussion.
Predictable operation must
István Derczó opened the discussion with a statement on the situation in the sector:
"a large part of the speakers before us have told the truth: we are not in a good position, we have to admit it"
The current market situation could lead to a resumption of chain payments. He said: "We are at a low point, and the only way to get out of it is to stick together. We have to try to lean on each other and increase the efficiency of our workers, who typically work 5 to 6 hours; we should increase that to 8 hours. And to do that, we need to measure everything, because we can only make a difference if we know the exact data."
"While in the surrounding countries, the Weinberg CEO detailed, construction prices have risen by around 40%, here at home it is 130%, which is devastating and illustrates the underlying problem. Predictability should include allowing investment to enter the market in a more evenly distributed way. Now, instead of a predictable vision, the sector is being hit by campaign-like shocks, which is making our operations very difficult."
This can be changed by training and a workforce with usable knowledge, because those who are up to date with the latest technologies can carry out the tasks they are given efficiently and quickly. "We need to give students a career model to strengthen the Hungarian economy as Hungarian engineers. So we, the operational staff, have a role and responsibility in this", he confirmed.
Engineers are badly needed
Tibor Massányi also drew attention to the shortcomings of the public procurement system. "For a company of DVM's size, it is not normal that our revenue from budgetary sources has reached roughly 1% in the last 30 years. I think that describes the problems here." He stressed:
"If we are talking today about how to make the construction industry more efficient, education is a key concept. For ten years, the number of engineers has been falling dramatically, even though they are vital to our profession - and we are actually doing nothing about it."
The extent to which a young person wants to become an engineer also depends to a large extent on what kind of career they see in construction and how "sexy" engineering is today; in other words, how respected it is in society. "I think," he stressed, "we are very badly off on that. So as a construction player, every company needs to think about how to change that."
You have to be effective instead of efficient
Gábor Papp highlighted the example of his own young company: "My company forges its competitive advantage by trying to apply value engineering as much as possible. We try to revise designs and provide alternative solutions for clients so that they can get a cheaper and faster solution."
He recalled: "István Madár's graph was very illustrative, showing the upward trajectory between 2014 and 2019. Even then, there was already talk about the need to be more efficient, but many people confused that with the word efficiency."
In the past, contractors have dealt with many problems not by working more efficiently, but more effectively, including by using more manpower to deal with difficulties. In the long term, this may not lead to results, as is now evident. "There is a serious threat to the work ethic of Hungarian workers. The recent pull of the construction economy has made the construction industry comfortable, and this has led to a situation where we cannot exercise sufficient control over construction production now that the situation is difficult", Gábor Papp explained.
Unpredictability must be resolved
dr. Csilla Rázsóné Szórádi drew attention to the lack of motivation: "As a national franchise network of construction materials producers, we see the lack of employee motivation as a very real problem.
An additional difficulty is that the domestic economic environment is cyclical, unpredictable and pulls little innovation. I am not surprised that young people are not choosing our sector, as we are not attractive to talent; but perhaps even more worryingly, we are not attractive to investors either."
He pointed out that "we see a decline in profitability and an even further deterioration in the morale. We have been using customer insurance for a long time and the first drawdowns started last October. So I cannot report an improving situation, but rather a deterioration that started last autumn."
Solving the problems with public money
András Wolf then encouraged his audience to look to the future:
"There's been a lot of talk today that there's trouble. I would like to point out that I don't think there is a problem, I think there is a task that we have to solve.
We have a lot of work to do: we have to adapt to new investors coming from China and other countries in the Far East, who are investing in a completely different working culture and way of thinking. If we want these to be built by Hungarians, we have to meet the needs of our clients." He also stressed that we should not adapt blindly, but that every construction company in such a situation should examine what new investors do differently and better.
"To see the problems and solutions, we need to measure data and look at everything down to the smallest detail", he warned, adding, "we are constantly tracking access data at Market Csoport, which alone carries a tremendous amount of information. Our measurements show that our colleagues in the work areas do not work more than 5-6 hours.
So what we would need to achieve is to get 8 hours of work from employees, which in the low end would be an efficiency gain of 25-30%. That alone might solve a significant part of our problems."
"We often say that everything around us is bad - the regulation and the economic environment are bad. I think we shouldn't really be dealing with that. For more than ten years nobody has helped us, we have to solve the problems ourselves. We need to fundamentally change our education system and rely on ourselves" - concluded András Wolf.
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