Malta’s performance of its construction industry versus the EU averages suggests a healthy scenario.
The European Commission’s outlook it conducted on Malta in 2021 concluded that “the Maltese construction sector has a positive outlook in the medium and long term.” This is also being reinforced by the country’s civil engineering market;
Malta has been allotted Eur316.4 million in EU grants, and has announced its intentions in its updated Stability Programme 2021‑2024 report to continue investing “in the country’s infrastructure to meet both, current and future economic, social and environmental challenges.”
The sector has indeed been affected by a number of factors. The gradual entry of new regulations on a wide range of elements pertaining to the construction sectors, a lack of human resources which was exacerbated by Covid’s effects on Malta’s population demographics (and labour workforce), and a longer payment time frame being experienced by the suppliers of the industry have significantly affected cash flow, operations, and thus profits.
Maturity stage within an industry’s life cycle is also noticeable through a happening of mergers, acquisitions, closures, and general tightening of supply. We can see this occurring somewhat within the construction, property and interiors industries, where the stronger players are either solidly working, or banding together, in gaining a larger portion of market share, while a portion of our smaller, less prepared players are opting out of the scene, or becoming absorbed, along with their job books, by their more relevant counterparts.
Such a scenario, in reality, provides significant opportunity to those who are willing to seize it.
But there is nothing wrong with operating within an industry owning, or enjoying, an indefinite maturity stasis. There is nothing which can stop the need to build and embellish. Adding new features and services, revitalising brand packaging, identifying and penetrating new and valid market segments, and corroborating brand positioning are all tried and tested means of consolidating one’s market presence and of gaining market share in such an environment.
We are proud to see the industry employ Design & Build as a vital means to these ends. And we are equally grateful to our readers for entrusting us with their interests and attention. I humbly urge all relevant market players to ensure that these four steps remain, or become, the pivot to their strategic relevance and growth objectives.
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