Commentary prepared by Justas Daukantas, Commercial Director of the general contracting and construction company Gilesta.
Lithuania is approaching one of the most significant infrastructure phases in recent decades. The development of military infrastructure planned for 2024–2027 will require not only swift decisions but also a strong foundation within the construction sector. To build this foundation, we must understand the challenges that already exist, the ones that may arise, and plan how we — both the construction industry and the state — will overcome them. So what can we expect?
Prices of construction materials and supply challenges
Reinforced concrete, concrete, and metal products are essential components of military infrastructure. Local producers of these materials are already operating at full capacity, as economic growth has significantly increased the state’s construction needs. For the first time since independence, we are building new kindergartens and healthcare facilities, with schools, stadiums, and many other projects on the horizon. Adding military infrastructure on top of all this may push additional orders beyond the production capacity of local manufacturers. Importing from neighbouring countries such as Poland or Latvia is possible, but it brings additional logistics and transportation costs.
The situation with metal products is also concerning because, in addition to potential local market constraints, this construction material is closely tied to the international market. The global market is currently experiencing changes that offer no clear outlook for stability. As a result, the metal supply situation in construction carries a great deal of uncertainty and may become a challenge in the development of military infrastructure.
Labour shortage
The construction sector has been experiencing a shortage of qualified labour for several years. Military infrastructure projects, which require rapid implementation, will only intensify this pressure. Moreover, the number of private and public projects is also increasing, heightening competition for limited human resources. The state plans for the necessary military infrastructure to be completed by 2027, meaning that concrete measures to address the labour shortage must be taken now. This is no longer a question of convenience — it is a matter of national security.
Strategic state involvement
Everyone understands that in uncertain times, the construction sector becomes the foundation that must operate like clockwork. Today, this is especially important if we want to deliver all military and non-military infrastructure projects on time and with quality. One thing is clear: responsible state institutions and policymakers must work closely with representatives and experts in the construction sector to identify potential challenges and implement national-level measures to address them.
For example, we must jointly look for ways to encourage local production of construction materials, particularly reinforced concrete, to reduce dependency on imports and increase manufacturing capacity so that we do not face shortages or disproportionately rising prices. We must also continue finding ways to expand the labour force: investing in vocational training and upskilling, providing scholarships for those who want to study, motivating workers, and simplifying employment procedures for foreign specialists.
Construction is a pillar of national security, and when preparing for potential challenges, it is essential to understand what is happening now, what may happen in the future, and to act without delay.