Expert Mini-seminars: Digitalization of Production and Impacts of the New Building Act

CzechInvest managers had the opportunity to deepen their knowledge in two areas that are currently resonating in the Czech investment environment. Luboš Lukasík, Director of the Commercial Enterprise Market Division at T-Mobile, spoke about the digitalisation of production. The significance and impact of changes in the Construction Act were discussed by Zdeněk Kovář, Managing Director, and Pavel Klusáček, Senior Project Manager, Drees & Sommer, who also shared their practical experience with this issue.

We are proud to say that the Czech Republic is at the top of the digitalisation rankings compared to other Central European countries, both in terms of digital infrastructure and digitalisation of industry. Already today, we can boast 5G network coverage of over 83% of the population, which is above the European average, and by next year coverage is expected to reach 95% of the population. The current massive investment in the development of fibre-optic networks should result in almost complete high-speed internet coverage within 2-3 years, making the Czech Republic one of the best networked countries in Europe. High-quality digital infrastructure forms the basis for the effective digitalisation of industry, which enhances the long-term competitiveness of Czech businesses in global markets. The country has a unique ecosystem involving cooperation between investors, technical universities and innovation or testing centres. Thanks to this, international companies such as Continental, Vitesco, Bosch and Iveco are the first to implement Industry 4.0 and industrial AI elements within their concerns.

The situation surrounding the new Building Act and the suspended digitalisation of the construction procedure brings many question marks and only cautious answers. The new Building Act, which came into force on 1 July 2024, has brought positive changes, such as a new commenting system under the administration of the building authority or the introduction of a unified environmental opinion. However, the unfinished digitalisation of the construction procedure is reverting some procedures back to paper, leading to concerns about the lengthening of administrative processes, mainly due to possible confusion in the submission process. A very useful part of the seminar was the comparison of construction procedures between the Czech Republic and neighbouring countries. While the length of the process does not differ significantly for "ordinary" constructions, for projects of strategic importance the neighbouring countries have legal instruments to speed it up significantly. Other differences influencing the speed of the construction procedure in the neighbouring countries include, for example, the motivation of local governments to support construction (tax budgeting) or the degree of responsibility of the investor vs. the construction authority for the permitted project.

The seminars provided valuable information on how to communicate more persuasively with potential investors in favour of the Czech Republic as an attractive destination for new investments. We would like to thank the representatives of T-Mobile and Drees & Sommer for a better understanding of the topic of Digitalization of the industry and the current construction law.