Răzvan NICULESCU-ARON, Vice President of FPSC, at FERM 2025: “Support local builders – without them, even major contractors cannot operate”

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REGIONAL ECONOMIC FORUM MOLDOVA 2025

19th Edition – Vatra Dornei, July 9–13, 2025

Thematic Panel:

The Role of Infrastructure in Economic Development

Speaker:
Niculescu Aron Răzvan – Vice President of FPSC (Federation of Employers’ Associations in Construction)

Presentation Topic:
“The Role of Infrastructure in Economic Development”

Răzvan Niculescu-Aron, First Vice President of the Employers’ Association of Construction Companies and Vice President of the Federation of Employers in Construction, advocated for the continued support of public investments, especially in infrastructure, which he described as the fundamental engine of economic development and of strengthening the national budget.

“Without investments, progress is impossible. Moreover, we want increased budget revenues. In order to collect, investments must function.”

Construction – a Strategic but Vulnerable Economic Pillar

Niculescu-Aron highlighted the construction sector’s significant contribution to the national economy, emphasizing a jump from 8% to a potential 10% of GDP in just one year, despite difficult conditions.

“Last year, the construction sector accounted for 8% of GDP. This year, even operating in emergency mode, we believe we’ll reach 10%. Just imagine what 10% of GDP means.”

This progress, he stated, was made possible through a sustained partnership between employer organizations and central authorities – Government and Parliament – which have constructively collaborated to address legislative and administrative bottlenecks that have emerged in recent years.

Emergency Mode: Unfinished Investments Could Become Structural Vulnerabilities

One of the most pressing concerns raised was the risk of halting ongoing projects. Niculescu-Aron explained the concrete implications of “emergency mode” in construction.

“If even the ongoing investments aren’t ensured, if their financing isn’t guaranteed at any cost, not only will collections decrease, but we face highly irreversible consequences. A halted construction site has much higher restart costs.”

Beyond the direct financial implications, work stoppages have severe side effects, particularly concerning the already critical labor shortage.

Workforce: Emergency Solutions Cannot Replace Investment in Local Human Capital

The FPSC Vice President spoke about ongoing efforts to bring in labor from abroad, but emphasized that the real solution lies in the reconstruction of internal human capital, especially in disadvantaged or developing areas such as the Moldova Region.

“It is preferable to secure as much qualified labor as possible from our own country. If these investments continue, we can support not only wages, but also the overall well-being of workers.”

He issued a clear call to mayors and local councils to actively support local construction companies, particularly in small and medium infrastructure projects – water, sewage, and supply lines.

“It is very important to support local builders. Without them, even major contractors cannot operate. If you don’t help them, it will become increasingly difficult for them to remain dignified and continue offering you their services.”

TECH Cluster – A Model of Innovative Collaboration Between Academia and Industry

A special moment in the speech was dedicated to the TECH Cluster, described by Niculescu-Aron as a successful example in the development of the sector.

“Four or five years ago, we created the TECH Cluster – the most important construction technology cluster in Romania, developed together with the Technical University of Civil Engineering Bucharest, universities from Cluj, and hopefully soon, also the University of Suceava.”

The cluster secured major EU funding for professional training and sector digitalization. Moreover, it facilitated international knowledge exchanges and study visits to Singapore, Germany, and other European countries, becoming one of the most highly regarded clusters in the field at a continental level.

“We’re bringing in new partners to provide contractors with access to the latest technological developments. It’s an important step, and may lead to new collaborations and discussions here in Moldova.”

Conclusion

Răzvan Niculescu-Aron’s address offered a clear and responsible assessment of the state of infrastructure and the construction sector in Romania, as well as a realistic call to action. With solid arguments, relevant figures, and direct appeals to local and central authorities, he demonstrated that investments in infrastructure are not merely development projects, but also measures of economic survival.

Without continuous financing and a coherent vision, the risk of stagnation becomes imminent. On the other hand, genuine partnerships, support for local firms, and valuing local labor can turn challenges into opportunities. In Moldova – a region with great needs and significant potential – his message carries even greater weight: without investments, there is no future; and without construction, there is no development.

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