Despite a steady decline in construction output over the last five years, the number of building companies active on the Czech market has jumped by 50 percent since 2008, according to figures released by CEEC Research. Jiří Vacek, director of CEEC Research, says layoffs are one of the key reasons behind the increase of companies in the sector. Vacek explains that many construction workers will open their own small business after being laid off.
Companies with more than 50 employees suffered the most during the crisis, according to CEEC. In March 2008, there were 750 contractors with more than 50 employees active on the Czech market. The figure dropped by 200 over the past six years, but only 20 percent went out of business. The rest reduced their staff. Vacek told the server ihned.cz that an additional 13 to 17 percent of the businesses, or 6,000 out of the total 300,000, need to leave the market in order for supply to match demand.
