INFOBANK: People change to more economical products.
Loss of 40 % from 2008 to 2013.
2,2 % is the recession in 2014.
Indications of stabilization appear in the Architectural Greek market after 5 years of crisis in the field of New Buildings , which the consequence was the decrease of paints sales and especially in the construction field.
According to a research for the field of paints (importers and producers ) which prepared by Nikolaidis Alexis Economic Research & Sectoral studies Analyst of Infobank Hellastat in 2013 the market appears to be stable , as the demand increased a little bit and the total turnover meet more or less the figures of previous year.
This normalization accompanied by regular growth of the production capacity as the Hellenic Statistic Corporation that year mention the increase was about 2,6% after 4 years recession because of the exports.
REDUCTION OF PRODUCTION CAPACITY
At the end of 2013 the level of production capacity had a recession about 40%.
In November 2014 an additional recession of 2,2% according to the previous year.
People that watch market, believe that the incomes will not have a remarkable change, because the economy are much more better.
This happens because consumers are buying cheaper products.
Because of this crisis in the buildings firms are much concerned in products with bargains, so the spread of the profit is lower, and also making big opening credits in the companies they cooperate with.
Also the demands of working capital are higher, because they face delays in the collection of money as a result of loss of liquidity.
According with Mr Xrisosotomos Katsis Managing Director of IBHS the improvement of macroeconomic conditions, that we see this period will give power to the consume of paints, but only if the political stability occurs in the near future.
In order to give some breaths to the field of colours, it is required restart of the public projects.
Moreover reinforcement of the program Public Investments and the buildings market via measures like: reduction of VAT in some places and some categories of buyers, and support of interest in mortgages.
DECREASE OF LOSSES
According to the elements of INFOBANK HELLASTAT the turnover of the production and importing companies of paints and varnishes had an increase in 2013 3,1 % about 303,40 million euros after 4 years recession the previous 4 years , as in the market appeared stability and a small increase in the production capacity.
In 2013 the 2/3 of companies had profits. A positive development was the deterioration of loss of 15 % up to 25% in the period of crisis.
16.384 BUILDING PERMITS
The building authorities in 2013 issued 16.384 licenses, (27,6 % of the year 2012 ). The recession continue in 2014 , the first 9 months issued 9.842 17,8 % less than in 2013.
The building market has a reduction in the activity, not only in the new buildings but also to the second hand.
Because of this situation they are about (250.000 – 270.000) not saled buildings because of the reduction of mortgages , increase of taxes in buildings and the limitation of the power of people to buy a house.
Another factor which caused the sudden fall was also the lack of mortgage credit.
In 2013 the mortgages reduced for fourth year about 3,3 % and was about 1 billion euro.