Dragutin Kamenski: Growth Based on Price Increases, Not Actual Realization, Is Not Needed by Anyone

Although we are in the holiday season, preparations are in full swing for the most exciting economic day of this year, the traditional Lider event Day of Big Plans, which will take place on September 21 in Zagreb. Given all the economic and political circumstances that have befallen us after the pandemic, such as the Russian aggression against Ukraine, rampant inflation hinting at a recession, still present shortages of materials and raw materials, and (although to a lesser extent) unstable supply chains, it is certain that there will be no shortage of interesting topics and insights at the conference. And this will come firsthand from the leaders of the Croatian economy who will present their forecasts and predictions for the coming year.

Among them is Dragutin Kamenski, one of the leading builders in Croatia, who reflected on the current challenges in the construction sector.

– It is currently very important to contract works in a way that both parties agree on the algorithm for calculating price increases, which cannot be predicted at the time of contracting and can put one or both contracting parties in a very unfavorable position. In addition to prices, challenges also include the availability of materials within planned deadlines and the increasing shortage of skilled labor – emphasized Kamenski.

He also notes that today the risk and caution are far greater when contracting new jobs. Kamgrad’s projects often span multiple business years, and assessing all risks during that period is impossible. 

– Analyzing the business results from last year, we all noticed an increase in revenue in the energy sector. This was a result of price increases, not increased actual realization. Such growth is not needed by anyone as it automatically increases costs for service/product users. At Kamgrad, we would be satisfied with stabilizing operations at existing levels, maintaining a steady cash flow, and continuously investing in employee satisfaction and competencies as the most crucial lever of the company – adds Kamenski.

This year, Kamgrad has completed projects: a new pediatric hospital and gynecological clinic in Rijeka, the reconstruction of the Brioni hotel in Pula, a new logistics center for Eurospin, a residential complex RIO in Rijeka, and the Resort Petram project in Savudrija is nearing completion. Among the significant contracts signed this year, Kamgrad will work on the project of the Special Hospital for Orthopedics and Traumatology Akromion in Zagreb, a new business complex GTC Matrix C in Zagreb, and Lidl’s new logistics center. Given that these are complex projects, they will also mark most of the next business year.

– We try to be maximally focused on our work and active contracts every day, we strive for our investors to feel as little as possible the problems of supply chains and all other challenges of this time, and we remain optimistic about the future – concludes Kamenski.

In the last 13 years, the business event Day of Big Plans has become a trademark of Lider’s conferences, gathering around 4600 participants and 220 speakers, mostly leaders from various industries and prominent figures from political and public life. The conference has gained the status of an indispensable political-economic event, and this year it will cover key topics such as global trends, expectations for the next year in the region, monetary-credit policy in 2023, fiscal policy and its effects on consumption, attracting investments and promoting exports, and forecasts for 2023.

Do not miss the opportunity to network with the most successful entrepreneurs, register in time to participate in the 14th Day of Big Plans which will be held on September 21 in the Great Congress Hall of the Zagreb Fair. More information can be found at the link.