An exceptional sector – growth outpaces both the US and Europe


“Lithuanian Morning”, Audrė Srėbalienė

Demographic challenges, green and digital transformation, financing conditions, technological breakthroughs, and geopolitical tensions are forcing construction sector companies to change their operating principles. They face challenges at will.

The constantly increasing demand for housing, commercial buildings, offices, and competitive orders from various state institutions are growing the construction sector.

“We are both construction project contractors and infrastructure developers. We have to not only respond to the changes that have begun in the construction sector, but also see the development directions of construction. We must create an operational strategy and increase the competence of all employees in such a way that we remain competitive in the future,” said Almantas Čebanauskas, CEO of the general contracting company EIKA Construction.

Lithuanians are pushing forward

According to statistics, the construction sector in Europe and the world continues to grow moderately, for example, last year it increased by 1.2% in Europe and by 2% in the world. It is predicted that the growth rate in Europe will remain similar – this year the sector will grow by about 1.5%, and in the coming years – by about 2.2%.

In Lithuania, annual growth last year reached 3 percent. According to preliminary data, this year it will be 3.5 percent, and in 2026, growth of 3.8–4 percent is forecast. A similar trend will continue in 2027–2028.

So what are the reasons that allow the construction sector to be awarded such favorable forecasts?

“Contracting and real estate development companies operating in the Lithuanian construction sector will have the opportunity to grow faster than the European average, because they are able to implement infrastructure, energy and defense projects with high quality, increase productivity, implement technologies, automate processes and invest in people – in their qualifications,” assured A.Čebanauskas.

According to him, EIKA Construction is following exactly this path. The company pays great attention to optimizing processes and is open to technological innovations that increase work productivity.

“Working on the principle of general contracting, we are able to implement projects earlier than planned in the contracts. This provides an opportunity to save money and time, and customers do not have to worry about delays or increasing costs,” said A.Čebanauskas.

According to him, specific circumstances are also driving construction in Lithuania. For example, the defense sector will receive 5–6 percent of the state budget’s gross domestic product (GDP) annually from 2026. This will promote the development of both infrastructure and military projects, such as the Rūdninkai military training ground, the European-gauge railway “Rail Baltica”, or renewable energy.

“The Lithuanian construction sector will continue to grow faster than the European average if priority is given to innovation and efficient technologies that increase productivity. Companies that are lagging behind risk disappearing, because in the future added value will be created using technology and human skills, in other words, those who work smarter and more efficiently will win in the competitive struggle,” said A.Čebanauskas.

According to him, the construction of the Rūdninkai military training ground in the Šalčininkai district, worth 1.2–1.8 billion euros, is proof that Lithuania is capable of implementing top-level projects. Currently, the Rūdninkai military training ground construction project has already been divided into several stages – residential construction, transport-logistics and administrative premises.

It is determined who is responsible for each of them.

The advantage of a cohesive team

“Vision, responsibility and technology – all this promotes the progress of our country’s construction sector,” emphasized A.Čebanauskas.

According to him, EIKA Construction is responsible for the entire construction process – from the design of the objects to their implementation. When all the work is concentrated in one general contracting company, there is an opportunity to smoothly coordinate all processes, assess risks in a timely manner and ensure the quality of the work.

“Such an activity model, where responsibility for the implementation of the entire construction project is transferred to the general contractor, protects clients – investors – from various risks and guarantees that the work will be completed on time and efficiently,” said A.Čebanauskas.

According to him, currently more than 130 EIKA Construction professionals – architects, constructors, engineers, project managers – form a cohesive team. The construction process is complex, but it is able to overcome various problems that arise.

“We use various process management tools, for example, the centralized project management platform “Dalux”, which helps to centrally monitor what is happening and immediately overcome emerging difficulties. We adhere to international standards ISO 9001, 14001, 45001 and others, which guarantee that both design and construction processes are properly documented, controlled and audited,” the interviewee noted.

Work and competence

Modern equipment and technology are a necessity in the construction sector, but without competent, qualified employees, general contracting companies would be powerless. And this poses significant challenges for them, because the construction sector throughout Europe is lacking precisely those women who know their job.

Many contractors complain that they are particularly short of qualified specialists – that there are about 10-20% vacancies.

According to Deloitte Construction Outlook 2025, the problem of the shortage of qualified workers will become even more acute in the long term due to demographics – an aging workforce and emigration. According to A.Čebanauskas, although the overall unemployment rate in Lithuania is decreasing, the construction sector is in fierce competition for talent with the information technology (IT) sector and manufacturing industries.

“In our sector, most employees are older, so it is very important that they pass on their experience to young specialists – we need to build bridges between generations, invite young people and develop their competencies,” said A.Čebanauskas. “Our company has an extremely low employee turnover rate, which is encouraging.”

During the first year of employment for new employees, we pay a lot of attention to their adaptation, interviews, and mentoring.

We don’t leave a new person alone, so they get used to the team faster and start working more productively.

This year, EIKA Construction has welcomed a number of new specialists to its team, and next year it plans to increase the number of young specialists who want to work for the company.

Innovation and digitalization

According to international management consulting firm McKinsey, productivity growth in the construction sector lags behind other sectors by as much as 3-5 times. This is believed to be due to low labor productivity.

It has been observed that in those construction sector companies that implement BIM modeling, modular construction, and artificial intelligence solutions, their productivity has also begun to increase.

However, according to A.Čebanauskas, there are many obstacles on this path. The aforementioned shortage of new specialists and the constant need for investment – ​​including in employee training – pose challenges. There is also a fear of change, and the lack of certain standards also interferes.

“The issues of integration and interoperability – the ability to work together – have not disappeared. Large companies are often conservative, and changes are slow in them.”

We are trying to avoid all this, – assured A.Čebanauskas. – Every year we visit the largest international construction innovation exhibitions, we evaluate the proposals of the exhibition participants for increasing productivity and safety. We are constantly learning and are not afraid of changes, which benefits everyone – employees, suppliers and customers.

According to A.Čebanauskas, various technologies are changing construction – they increase productivity, help reduce the likelihood of errors and time costs, so it is important to be able to use them.

For example, BIM modeling is not only the three-dimensional geometry of the model, but also a source of information used by the entire project team.

This helps to detect project errors at the earliest stage.

Modular and precast reinforced concrete construction also reduces the risk of errors and shortens construction times.

Digital Twins allow for real-time management of building operations, while generative artificial intelligence (AI) is used to automate documentation, planning, and analysis.

Robotics, drones, autonomous systems – all of this is used for precise monitoring and safety on construction sites.

Threats and risks

“Our company has all the aforementioned technologies installed, but there are factors that are beyond our control and that still hinder the growth of the construction sector,” assured A.Čebanauskas.

According to him, financing conditions still pose challenges for the construction business – high loan interest rates and limited investment availability.

“The situation has not changed fundamentally where state institutions operate, because they are still erecting regulatory barriers – project coordination and issuing construction permits take a very long time. In addition, during the implementation of projects, construction costs are unplannedly increased by fluctuations in the prices of raw materials – metal, concrete and energy. In addition, during the implementation of projects, construction costs are unplannedly increased by fluctuations in the prices of raw materials – metal, concrete and energy. The challenges are not made any easier by the aging of employees. If we do not create attractive career opportunities for young people, there will be an even greater shortage of good specialists,” said the head of EIKA Construction.

There is also a risk of technology integration.

According to A.Čebanauskas, if innovations are implemented incorrectly or are selected incorrectly, not only financial losses may occur, because the systems may not be compatible with each other at all.

Smart planning

According to A.Čebanauskas, in the construction sector it is particularly important to properly plan the implementation deadlines for technical projects.

For example, in Vilnius, Naujininkai, EIKA Construction is performing construction work on the new Millennium Square project.

“Although the site could be fenced off and work could begin at the end of the year, we will not rush. We will leave the old square open to the public until spring, but we will prepare for everything during the winter – we will plan everything carefully, buy materials. We have calculated that if we start the work in the spring, we will complete it on time,” explained the head of EIKA Construction.

The success of project implementation is also influenced by the fact that a team of specialists is involved in them from the very beginning.

This gives employees internal motivation, increases responsibility, and allows them to live by the project.

“When a team has a clear goal, for example, to complete a project earlier than stipulated in the contract, this gives it an incentive to plan and execute everything more efficiently,” emphasized A.Čebanauskas.

Performance and technology

So what would be the recipe for success in the construction sector? What is needed to ensure that development does not stop?

“I have no doubt that both our and other contracting companies have great potential for this. The most important thing is to implement technological tools – BIM modeling, Digital Twin, use AI in planning, etc. It is also necessary to increase the digitalization of operations: automate quality control, construction monitoring, defect detection. It is important to apply prefabricated structures or modular solutions, especially where this helps save time, improve quality, and reduce work risks and costs. We need to invest in mentoring and build bridges of competence: train employees to use new technologies, cooperate with universities and research centers. The supply chain should also be managed effectively: it is good to conclude long-term contracts with manufacturers, order raw materials in advance, prepare resilience models in case of recessions and – this is especially important – always pay suppliers’ invoices on time,” answered A.Čebanauskas.

According to him, one thing to remember when working is not to lose flexibility in order to quickly adapt to regulatory changes, requirements for construction permits, and project financing conditions.

“Our goal is not only to adapt, but also to shape the future of the sector. Construction is becoming part of the technology sector and this is precisely our space for growth,” A.Čebanauskas summarized.