The economic outlook for construction in the whole country turned downward in the spring, but ongoing production supports construction until the end of the year.
However, like others, the construction industry is preparing for the winter energy crisis and the falling economic cycle. Based on the number of issued building permits, the amount of construction will also decrease in Satakunta.
Economic outlook for house construction in Satakunta
Based on the survey conducted by the building industry, no radical changes are expected in the construction of the Satakunta area. Residential and office construction is predicted to decrease, but on the other hand, a small increase is predicted for renovation construction.
The building construction contractors have been satisfied with the work situation so far. The biggest factors affecting the operation are considered to be the small number of jobs and the lack of skilled labor. Builders and customers, on the other hand, are put off by the high price level.
Construction is a way to revive the economy
"When we are going into a recession and the economy is falling, it is especially important to keep in mind that construction creates economic growth and tax revenue. The immediate effects of construction are employment and tax revenues," states the regional manager of Talonrakennusteollisuus ry Katja Suovo.
According to statistics, about one in five Finns is employed in new construction or maintenance of the built environment. Every million euros spent on construction employs around 15 people in the construction chain. The share of tax revenues is about 40–45 percent of the euros invested in construction.
"Long-term effects from construction are created through competitiveness, leverage and sustainable growth. Housing construction improves the mobility of the workforce, a well-chosen building site speeds up other construction, and both new and renovation construction can reduce emissions."
"Investments should therefore not be put on hold, but dare to stick to the plans and take advantage of the release of resources due to the recession. Now is the time to implement all the means to make construction smoother and easier, whether it's about processing times for building permit applications or the twists and turns of legislation," says Suovo.
See also
- Satakunta economic cycle review, autumn 2022
- Presentation materials of Satakunta's business cycle publication
Katja Suovo regional manager