Gulermak Heavy Industries Construction & Contracting Co. Inc [IST: GLRMK]

Marcin Dudrak

Modular Construction Strategist

Marcin Dudrak, based in Warsaw, Poland, is a seasoned Construction Manager at Gulermak Heavy Industries Construction & Contracting Co. Inc. He brings a wealth of experience from his previous roles at Gulermak, Astaldi, and AGP Metro Polska. With expertise in shaft sinking, tunnelling, microtunnelling, deep foundations, and civil engineering, he offers invaluable insights to the construction industry.

Through this article, Marcin shares his insights on development in the prefabricated construction industry in Poland, emphasizing the transition from limited growth to rapid expansion in recent decades

Browsing through the articles on the portal where this text can be read, I found a wealth of information about the use of prefabrication in a broad sense in construction. The undeniable advantage of these articles is that they are written by practitioners who work in construction daily, holding various positions in their companies.

I will try, in a few words, to describe how the market for heavy reinforced concrete prefabrication elements, as well as comprehensive construction solutions, looks in Eastern Europe, specifically in Poland, where I have worked for over 20 years.

To understand the process that has occurred and is still occurring, of which I am a witness, I should remind the readers of this article that Poland, along with neighbouring countries, due to post-war politics following the end of World War II, found itself in a block of states subordinate to the USSR. Unfortunately, this led to a very limited and poor development policy for construction in Poland and neighbouring countries. Due to changes in the world after 1989, Poland returned to a capitalist economy, and the state introduced a broadly understood democratic system. To illustrate the achievements of the communist state after World War II, Poland built only 100 km of highways in 45 years. The remaining part consisted of highways that were a legacy of the Third Reich, with some of its lands granted to Poland in the post-war arrangement. Today, it is estimated that the total length of so-called expressways is 4,000 km.

The development of construction took off especially after 2000. It's worth mentioning that part of the funds for this development came from various EU funds and loans, as Poland has been a member of the EU since 2004. May 1, 2024, marks exactly 20 years of Poland's EU membership! So, one can visually compare the changes in the last 20 years against the 40-year ‘achievements’ of the communist state. The development of construction has greatly influenced the growth of companies involved in prefabrication. Citing a report by Spectis, the value of concrete prefabrication production has almost quadrupled from 2011 to 2023, reaching over $1 billion per year.

Despite the outbreak of war on our eastern border, Spectis experts, in their report 'Polish Concrete Products Market 2022-2027', predict further growth. This is linked to plans for the construction of the so-called "CPK," an airport hub in central Poland, near Warsaw. Besides the construction of the airport, a railway system centred around the airport is also planned. The CPK railway investments will encompass almost 2,000 km of new lines set to be completed by the end of 2034. This will require the production of vast quantities of railway sleepers, bridge beams, prefabricated railway maintenance halls, tunnel segments, and more.

Apart from prefabricated elements related to railway and road infrastructure, many commercial and residential buildings are being built in Poland using prefabrication. There are several companies that construct prefabricated homes, allowing dream homes to be built in just a few days after the assembly teams arrive on site. At this point, it should be noted that due to cheaper labour compared to richer Western European countries, some production is exported to countries such as Germany, Sweden, Denmark, and even the United Kingdom. Given the increasing affluence of society and the related rise in labour costs, this trend is likely to shift the balance toward increased production for the domestic market. This offers a very optimistic outlook for the industry.