Three leaders, three perspectives, one direction – Key takeaways from SZABADICS at the Portfolio Construction Industry Conference

On Thursday 19 March, the Portfolio Construction Industry Conference</a was held for the eighth time. More than 500 leading figures from the construction industry gathered at the Hotel InterContinental Budapest venue to discuss the sector’s most pressing financial, regulatory and efficiency issues.

The professional forum and business networking event, sponsored by media partner magyarepitok.hu, offered attendees a number of stimulating and thought-provoking discussions.

In the article below, leading experts – speaking at three different round-table discussions – outline the current challenges and future directions of the domestic construction industry from the perspective of the representatives of SZABADICS Group.

He emphasised that managerial responsibilities can be handed over earlier, but relinquishing ownership control typically only takes place at the end of the process. At the same time, genuine leadership only develops if the successor is given both the necessary responsibility and the authority to act.

With regard to the family legacy, he highlighted two core values: quality work and the sanctity of one’s word. Alongside these, he introduced three new focal points into his own management philosophy: digitalisation, sustainability and rejuvenation. In his view, every generational change necessarily entails a shift in mindset, which brings new directions and opportunities for development to the organisation.

He also highlighted an important lesson: the measure of a successful succession is whether the organisation emerges from the process stronger than before. This depends on trust, the presence of credible leadership, and the fact that, after a certain period, the outgoing party relinquishes decision-making responsibility entirely.

Tamás Kovács: Diversification and efficiency are the keys to survival

At the roundtable discussion entitled „A clean slate. There’s no time for beating about the bush”, Tamás Kovács, Chairman of the Group, drew attention to the cyclical nature of the industry and the importance of adaptation. In his view, following the favourable period of the past decade, a more challenging environment has once again emerged, to which we must adapt through a conscious strategy.

The company’s response to this situation was market diversification: establishing foreign subsidiaries in Croatia and Romania, and expanding into new market segments. He cited as an example the fact that experience in public utility construction can also be applied in other areas, such as the installation of irrigation systems.

He emphasised that, in the current increasingly competitive environment, the key to success lies in improving internal operations.

More efficient processes, more thorough preparation and a carefully selected group of subcontractors all contribute to the company’s ability to submit competitive bids.

In the long term, stability is ensured by predictable operations and consistently upheld core values. For more than three decades, the company has been built on these two pillars:

a commitment to high-quality work and keeping one’s word, which he believes remains a reliable compass even in a changing economic and political environment.

Ignác Varga: Construction is really all about organisation – and it’s operating under ever-increasing pressure

At the roundtable discussion entitled „Bridge the gap, go beyond, dig deep!” – organised by magyarepitok.hu and moderated by Gergely Hegedűs, Editor-in-Chief – Ignác Varga, Director of the Building Construction Division spoke about the day-to-day challenges of the construction side. What made the discussion special was that all participants had previously featured in our Engineer of the Month column.

Ignác Varga used his own career as an example to illustrate the crucial role that professional development and practical experience play in leadership. In his view,

Today, general contracting is primarily not a technical task, but rather one of organisation and management: around 70% of it involves coordination, communication and organisation, and only a small proportion involves traditional engineering work.

He also highlighted that construction conditions have deteriorated significantly in recent years: the sector is characterised by fewer projects, lower funding and a significantly increased workload. He highlighted shortcomings in the design phase as a particular problem, the consequences of which contractors often have to deal with under tight deadlines.

He acknowledged the importance of digitalisation and artificial intelligence, whilst emphasising that their introduction poses a significant organisational challenge. It is difficult for staff to find the time and energy to learn the new systems, which is why

One of the most important tasks of managers is to motivate staff and shape their mindset.

Finally, the inevitable topic of the ‘dream project’ came up; in this regard, Ignác Varga cited an inspiring international example from the Delft University of Technology in the Netherlands, and expressed his hope that projects based on recycled materials would become more widespread in Hungary in the future.