Rapid price increases and the acute lack of qualified workers are putting increasing pressure on the construction sector, at a time when Romania needs massive investments in infrastructure. Cristian Erbașu, the director of the company Construcții Erbașu, warns that current budgets may no longer be sufficient, and companies are forced to make sacrifices to complete projects.
The statements were made on Tuesday at the Economist Romania Government Roundtable 2026 event, organized in Bucharest by The Economist editorial group.
Rapid Price Increases
Geopolitical crises and wars in the region are starting to directly impact construction costs, says the entrepreneur, who warns of a new wave of price hikes.
"We had unfortunate experiences three to four years ago with the price of construction materials. The price of materials will be affected by these crises, by these wars, it is evident. Just in the last month, prices have increased by up to 35% in some cases, in just three weeks, and here we are, representing almost half of the funds for building roads and highways," said Cristian Erbașu.
In these conditions, project budgets are becoming increasingly difficult to adhere to, even in a scenario where prices might start to decrease.
"Even if we make adjustments to contract prices, sometimes, when we have these problems, we hope it's just a temporary situation and hope that prices will decrease. However, it will continue to be a problem for us in the future, the price of construction materials, as many projects have very little execution time," he added.
Labor Shortage
In addition to price increases, the sector is facing a structural problem: a labor shortage. "For us, construction companies, this period is a major challenge, from the perspective of the amounts invested and not only, and from the perspective of budgets and quality, we will have to sacrifice, in a way, our profit for a better future," Erbașu stated.
He says that difficulties are exacerbated by the shortage of qualified personnel. "We have critical problems regarding the workforce. In Romania, it is not easy to find qualified people. So, at this moment when we need to do more and better, it is even more difficult," explained the businessman.
Furthermore, labor costs sometimes exceed those in Western Europe, not due to efficiency, but due to the lack of personnel.
Large Investments, but also Long-Term Obligations
In a context where Romania has much to catch up on in terms of infrastructure, companies need to prepare not only for construction but also for maintenance.
"Construction companies will be involved in carrying out the maintenance operations of these immense investments, so they need to prepare; otherwise, in 5-10-15 years from now, we will not have optimal conditions," said Erbașu.
At the same time, digitalization and new technologies become essential, but their implementation is not simple due to differences in vision among builders, authorities, and funders.
Another obstacle lies in how large projects are approached, especially public-private partnerships.
Erbașu believes that Romania has "a mentality problem" in this field and that authorities should adopt models that work in other countries.