„Dimitrie Cupovski“ 13, 1000 Skopje +38923244000 ic@mchamber.mk

Construction Sector in 2025: Identified Weaknesses and Clear Steps for Improvement

03/02/2025

 At the regular meeting of the Association of Construction, Building Materials, and Non-Metal Industries, discussions focused on the current state of the sector. According to the Q3 2024 analysis, which the Association regularly compiles, figures indicate an improvement in employee standards within the sector. This progress stems from companies' efforts to retain skilled workers and motivate future generations to pursue careers in construction.

According to the State Statistical Office (DZS), for the first time, net salaries in civil engineering have nearly matched those in building construction, showing a positive growth of 9.5% in the analyzed quarter. However, the sector recorded a 0.5% decline in building permits issued during Q3 2024. The Pelagonija Region led in issued permits, with a remarkable increase of 87.5%, while the gross domestic product (GDP) for construction, measured by the production method, showed a 2.4% growth in Q3 2024, marking a recovery from an 11.8% decline in the same period of 2023.

During the meeting, the Association's 2025 work plan and the report on 2024 activities were officially adopted. Additionally, an open discussion was held on current challenges facing companies in the construction sector, such as the shortage of skilled labor, and the administrative barriers in executing infrastructure projects. To address these issues, a working meeting with the Ministry of Transport is planned, where several key topics will be discussed: 1. Public procurement processes; 2. Project revisions—Many ongoing designs are still being developed with outdated cost estimates that do not reflect current market conditions; 3. Project documentation issues—Estimated project values often fall significantly below actual bid prices, creating delays and funding shortfalls; and 4. Encouraging investments—Increasing the participation of domestic companies in capital projects to strengthen the local economy and boost the competitiveness of the Macedonian construction sector.

With these conclusions and planned initiatives, the Association remains committed to enhancing the construction sector, improving working conditions, and developing sustainable solutions for long-term growth and stability.