Poland’s construction industry is facing a major crisis, with over 700 companies declaring bankruptcy this year—marking the third collapse since the country joined the EU. The downturn follows stagnation across the sector, triggered by a sharp drop in the number of tenders for construction projects over the past two to three years.
By the end of September 2024, bankruptcies in the construction sector have surged 40% compared to the same period last year and are already 10% higher than in all of 2023. Small businesses, especially those in installation, renovation, and general construction, are bearing the brunt of the crisis.
This slump spans both private and public projects, including housing and infrastructure. A significant factor has been the steep decline in tenders for railway reconstruction, which was caused by a lack of EU funding. Tensions with the EU over “rule-of-law” issues under the previous Law and Justice (PiS) government froze crucial financial support, further exacerbating the situation.
Marcin Ogulewicz from Coface points out that delays in tapping into the National Reconstruction Plan, ongoing stagnation in rail investments, and lengthy debates over energy transformation are all contributing to the crisis. For many in the sector, survival is the priority until public funding starts flowing.
On the bright side, the industry shows some signs of recovery. Road construction has gained momentum, with 34 contracts signed for 443 kilometers of new routes. Rail projects are also moving forward, with PLN 17 billion worth of contracts inked since the start of 2024.
However, a major project—The Central Communication Port (CPK), which would combine an airport, rail, and bus stations near Warsaw—is in limbo. Under the new government led by Donald Tusk, the project has been significantly scaled back, with construction now slated to begin at the end of 2025.
