South Moravian construction companies are seeing an increase in work abroad

Brno - Construction companies in South Moravia are increasingly taking on contracts abroad year after year. While in 2003 they spent about 400 million crowns abroad, two years later it was over 1.5 billion crowns, according to the Czech Statistical Office. South Moravian companies are among the most successful abroad compared to competitors from other regions. This growth, according to builders and economists, is expected to continue, as reported by ČTK. In recent years, construction in the Czech Republic has also been on the rise, with more companies and their employees.
There are over 300 construction firms operating in the region with more than 20 employees. In 2005, they spent 36.6 billion crowns. Although this is about a third of what the competition in Prague reports, South Moravian companies were about half a billion more successful abroad two years ago. In Prague, the share of foreign contracts was about one percent, while in southern Moravia it was four times that. "Foreign experience is a great prestige for companies, but it also brings greater risks," says economist Karel Potměšil, pointing out, for example, the more complicated enforceability of receivables.
South Moravian companies contacted by ČTK praise their work abroad. They usually work in consortiums with local builders. From the Czech Republic, they only bring site managers, project managers, and foremen. For instance, Unistav signed two contracts in Russia last year. As a general contractor, together with four other companies, it is to build a plant for cardboard at a cost of about 640 million crowns. "Succeeding outside of the Czech Republic is significantly more challenging; one must not only learn the language but also understand the local mentality," stated Rafael Karpíšek.
The Brno company OHL ŽS is involved in the construction of a highway in Azerbaijan, and it also operates in Bulgaria, Greece, and Montenegro. Foreign contracts make up about a quarter of the company's total revenue, and the volume of foreign contracts has been increasing each year in recent years, said Magdalena Boukhemisová from the company's media representation.
In addition to Eastern European and Asian countries, companies from Southern Moravia have also reached Europe, mainly due to the Czech Republic's accession to the European Union. However, Austria remains very cautious and is resistant to the entry of Czech companies, noted Potměšil. In the coming years, however, he expects a gradual easing, which could lead to additional work for Czech firms. Regions near the borders, such as South Moravia, could particularly benefit from this, the economist added.