Construction in Slovakia under pressure from inflation and investment decline

Slovakia’s construction industry is navigating a turbulent period, marked by slowing foreign investment and some of the highest inflation rates in the European Union. According to Petr Urválek, General Manager Slovakia at Takenaka Europe GmbH, these pressures are squeezing margins and intensifying competition. However, he argues that companies that diversify beyond industrial projects and embrace digital tools such as Building Information Modelling (BIM) will be best positioned to withstand market volatility and capture future growth opportunities.

In an interview with The Slovak Spectator, Urválek explains how the automotive industry’s shift to clean mobility is reshaping investment decisions, how digital technologies like BIM are transforming construction processes, and what it takes to deliver complex projects such as a car plant.

What are the main challenges currently facing construction companies in Slovakia? Do these challenges differ from those abroad?

It is necessary to distinguish between the public and private investment sectors. So far, we have remained solely in the private sector, particularly in industrial construction. Here, we are affected by the relatively low level of foreign investment this year and relatively high inflation, currently the fourth highest in the EU. We therefore expect greater competition for contracts and lower margins in the coming years.