Two experienced companies show the way out of the construction crisis

The current crisis is much more complex than the last recession in the construction industry in 2008, according to the latest episode of Weinberg Podcast. In the current broadcast, István Derczó, owner-manager of Weinberg Zrt., and Attila Tóth, founding president of CÉH Zrt., discussed the current situation in the sector and examined possible survival strategies.

While one sector plummeted by 80 per cent, the other jumped by 73 per cent.

Among the fundamental reasons, András Sabathiel, sales manager at Weinberg, who hosted the programme, cited the pandemic that began in 2020, followed by the Russian-Ukrainian war that broke out in 2022, as well as the currency crisis and inflation. all of which were compounded by the freezing of EU funds and major domestic government investments from 2023 onwards.

Attila Tóth pointed out that the 2008 crisis taught them that time should be used for learning, but that developments should not be halted at such times. András Sabathiel, however, explained that the sector is in crisis, which is a gross oversimplification, as the different sectors present a very different picture.

„Weinberget, for example, is not directly affected by the freeze on the public procurement market, as it is not active in public procurement at all. However, the industrial and warehouse building sector fell by 80 per cent in the second quarter of 2025 compared to the same period last year, which is nothing short of a disaster!”

he added. „The Weinberg primarily constructs industrial buildings and, secondarily, warehouses.”

The diversity of the sector is well illustrated by the fact that condominium construction grew by 73 per cent during the same period. „From the outside, the sector's volume decreased by 7.5 per cent in 2024, compared to 2.5 per cent in 2023. From a bird's eye view, this does not seem like a steep decline, but there are huge structural crises behind it,” pointed out András Sabathiel.

The Hungarian structural engineer gained a foothold in Norway during the previous crisis.

Attila Tóth emphasised that, as the crisis affects different segments, the essential task for companies is to broaden their portfolios and cover as many areas as possible so that they can reorganise their capacities.

István Derczó recalled the example of Weinberg in 2008 in connection with possible solutions. At that time, they expanded their geographical coverage and succeeded in winning contracts in Scandinavian countries: „We have had continuous projects in Norway ever since,” revealed the managing director.

Now a broader perspective is needed to enforce the same virtues.

He added that they believe that in such situations, greater emphasis should be placed on products with higher added value that are easy to transport and can be sold widely. „We found these virtues in tower block construction and in the manufacture of steel structures with higher added value at the time,” he said.

„I see the same solution now. Accordingly, we are currently coordinating our new certification systems with Deutsche Bahnnal: more than a thousand railway bridges are being renovated or replaced in Germany.”

In addition, István Derczó also mentioned that by increasing the flexibility of Weinberg, they are now able to undertake the construction of smaller buildings of 3-4,000 square metres, as well as agricultural and office buildings. They are also looking for opportunities in the Slovak, Croatian and Serbian construction markets. „Our parameters are good, our reputation is good, now we need a broader perspective to be able to validate this.”

The latest episode of Weinberg Podcast You can listen to it here.