The changing economic environment and rising energy prices are also impacting the construction industry. But how might the market for premium segment windows change? According to KAV’s CEO, Károly Lovász, the focus will shift towards the issue of shading, and it is crucial for builders to select companies with a stable background and a qualified workforce.
According to the November 2022 data from the Hungarian Central Statistical Office (KSH), the production volume of companies classified in the construction industry exceeded the previous year’s by 1.6 percent. However, the volume of the contract portfolio decreased by 1 percent, and 20.9 percent fewer new contracts were signed. Although the investment-driven construction enthusiasm may increase, experts predict a decline in construction enthusiasm for this year. According to Károly Lovász, this year could bring about trends similar to those seen in the middle and lower category buildings during the 2008 period. Due to the decreasing construction enthusiasm and still rising prices in certain areas, companies might even accept undercommitment in prices when contracting, which could raise significant profitability questions. Therefore, it is of utmost importance for builders to proceed with caution in the planning process and when selecting companies. “If a builder doesn’t carefully choose the companies they contract with for production, manufacturing, or construction, they are exposed to greater risks in the current market environment. It is essential – even from free database sources – to verify a company’s data and financial indicators, its workforce, and personally check its real references. Many one-person businesses in our country deliberately advertise themselves as if they have a strong team and background of their own. If there are no real human and machinery resources, self-owned manufacturing capacity behind a company, the professional and financial exposure will be much higher than ever before. The number of inquiries about repairing or correcting houses left or damaged by our competitors has tripled since last year. There are many one-person companies in Hungary with no quality professional team or self-owned manufacturing capacity,” emphasizes Károly Lovász.
If a builder selects a company with an inadequate background, there is a higher chance that the property will not be completed or that it will not be finished to the quality specified in the plans and contracts. It is possible that they may not finish the houses or accept jobs at such low prices that make high-quality execution impossible. It is advisable to consult with specialists in various fields even during the house planning phase. The more conscious selection of products and materials often pays off during maintenance, considering maintenance and utility costs. When selecting windows, it is also worth emphasizing comprehensive sun protection, including glare protection and shading.
“In terms of the type of windows that will be used in Hungarian buildings, I don’t think there will be significant changes for now. Today’s glass structures have outstanding technological and energy efficiency parameters. The market share of outdoor aluminum windows is expanding even in Hungary because this material provides the slimmest frame system for large glass surfaces, all while offering excellent thermal insulation parameters. The glass panels integrated into today’s façade windows are already so advanced in terms of thermal technology that the biggest problem is often the greenhouse effect generated indoors and the excessive amount of light during occupancy. Therefore, for the sake of keeping cooling costs in check, external active shading is essential, yet, to this day, we often encounter premium projects lacking external active shading,” says Károly Lovász.