Évosz Underscores Energy Price, Exchange Rate Exposure


Image by Pixabay

Hungarian building material companies and general contractors priced in the impact of the war in Ukraine and supply issues in the first half of the year, but unpredictable changes to energy prices and the forint/euro exchange rate "remain a vulnerability," professional association Évosz said yesterday, according to novekedes.hu.

Évosz noted that spending on energy accounts for around one-quarter of the building material industry's input costs, although the rate is higher for producers of cement, tile, bricks, and some insulation, despite investments in up-to-date, energy-saving production technology.

General contractors, who get 48% of the building materials they use from imports, are exposed to the HUF/EUR exchange rate, Évosz said.

It added that even a "slight" weakening of the forint could result in a "significant" increase in prices in the construction sector.

The association said that efforts to retain skilled workers and engineers are expected to raise construction n industry companies' costs further. It also highlighted issues on the demand side as state and local councils have postponed a "significant volume" of investments and households have "reached the limit" of their ability to finance energy-savings renovations.

Évosz said local and foreign investors who have counted on state subsidies till now would appreciate "other state cooperation," too.


Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga Analysis

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.