From a three-person operation to a major Hungarian market player working with several international strategic partners — this is how 3E International has evolved over the past twenty years, said Balázs Korintus and Gergely Laczkovich, the company’s two founding managing directors. In the coming years, 3E International aims to strengthen and sharpen its international presence, expand into new business areas, and fully leverage the opportunities offered by digitalisation and artificial intelligence.
What was it like starting out 20 years ago? What inspired you to establish the company?
Balázs Korintus: Both of us have always had a deep desire to create and generate real value. Early on, we realised that our goals could best be achieved through a joint venture, and it also became clear that we could only control our own pace of progress if we built something together in this form. Another key factor behind launching the business was the high degree of freedom it offered — even with all the constraints that come with entrepreneurship, it still meant a much broader scope for action.
Gergely Laczkovich: It’s also worth mentioning that when we started the company, we were extremely bold — or, if you like, blissfully unaware. But we were driven by enthusiasm, and it felt completely natural to set out on this path, even though we didn’t fully grasp what we were getting ourselves into at the time. A sense of adventure was essential at the beginning as well: both of us had worked as employees at large companies in our field, but we wanted to experience what it’s like when there’s no one to point fingers at, no one else to hold accountable — when the outcome depends solely on us. Starting the business was a major decision in many ways, even if we didn’t fully realise the weight of it in that moment.
Over the past 20 years – a period marked by several smaller and larger external economic shocks — which were the toughest times?
– L. G.: When we launched the company, there were exactly three of us — we literally started from zero. Over the last two decades, we’ve naturally faced a number of smaller and larger crises. Some were external, such as economic downturns or social changes that directly or indirectly affected the construction industry. And then there were internal challenges as well, arising within our sector or in specific projects, which had an impact on us personally — and, of course, on the company.
To name a concrete example: the financial and economic crisis of 2008–2009 hit everyone hard, and we were no exception. For months, our income barely covered the office rent. Even so, we stayed the course: we continued our work, delivered on our commitments, and didn’t abandon our clients. At the same time, several international companies closed their offices — and I’m fairly sure the client experience with them must have been quite different.
It’s also important to note that from the very beginning we’ve always had our own investments. This means we experience market volatility firsthand, which gives us a certain empathy and a deeper understanding of our clients’ situation. We can truly think with the client’s mind.
– K. B.: Beyond the large external economic and social crises, the internal challenges that arise during our operations can also be tough — when a seemingly ordinary project suddenly takes a difficult turn. Issues may come from the client’s side, or from the contractor: we’ve had cases where the general contractor pulled out of a project unexpectedly. These present a completely different kind of challenge, one that must be addressed quickly and effectively in the moment.
What are you most proud of from the past 20 years – professionally or personally – and how far has the company come in its development?
– K. B.: Perhaps the most important thing is the community and environment we’ve built within the company. The collaboration, support, and knowledge-sharing that drive our day-to-day progress are, to me, an enormous value, because the whole team is always needed. Another source of pride is that we have several respected international engineering service partners who regard us as a strategic partner, both in Hungary and across the region. This is extremely significant because it serves as a form of validation: recognition that the work we started twenty years ago from a single idea has grown into a company that delivers quality and reliability recognized and endorsed by major international firms.
– L. G.: Our overall market presence is strong, and I think that speaks for itself — we occupy a position in the Hungarian market that I believe is a source of pride in every sense. It’s also very important that our market position is fully transparent, open, and independent, which is a highly valued trait in the engineering world for those who prioritize it. Our recognition is further reflected in the many long-term clients we continue to serve.
How do you see the company’s future, and what are the medium-term plans for 3E International?
– L. G.: Our opportunities are closely tied to general trends in the construction industry and the state of the construction market. Over the past year or so, the sector has clearly been in a downturn, which cannot be ignored. At the same time, government investment is currently more restrained. This affects us directly only to a limited extent — 85–90% of our projects come from private investors — but it has an indirect impact as well.
In the medium term, we plan to continue and even accelerate the growth pace that has defined the last 10–15 years. A key part of this will be expanding the reach of our services beyond Hungary, increasing our presence and activity in international markets.
What are the potential directions for your international presence?
– L. G.: Over the past twenty years, we’ve worked in numerous countries for a variety of reasons. Sometimes it was for a Hungarian client abroad, sometimes for an international client abroad, but these projects were often ad hoc rather than part of a conscious strategy. We definitely want to change that and place greater emphasis on participating in international projects in a more strategic way.
For example, we’ve successfully worked with one of the world’s largest engineering groups in the Balkan region, across multiple countries, on significant projects. In Plovdiv, we built a factory for a major international corporation. We are a reliable, long-term partner of the Ministry of Foreign Affairs, providing professional support for numerous projects linked to Hungarian diplomatic missions around the world. Beyond that, we currently see opportunities in some African countries and the Middle East, where regional development could offer interesting prospects for us.
– K. B.: Operating in foreign markets brings a major advantage: being able to establish a presence and gain a foothold abroad elevates a company’s reputation, providing tremendous validation. That said, I’d like to return briefly to the Hungarian market, which Gergő touched on earlier. The market contraction of the past year or two has also brought a kind of “cleansing” in our sector: those players who remain standing will be able to grow faster in the future, partly because demand that temporarily disappeared will eventually return.
At the same time, we must be prepared for the market upswing: it’s important to implement systems that support operations and increase efficiency to ensure future success. Digitalisation is extremely important in this regard, and artificial intelligence — also increasingly relevant in construction — is something we are investing more and more attention in.
Although the construction sector’s overall performance isn’t particularly strong, certain indicators — such as order books — show encouraging signs. What can be expected regarding the operating environment?
– L. G.: The general economic situation in Hungary currently carries a lot of uncertainty, not least due to regional and global political conflicts and transformations. Construction projects are always the result of long-term planning. The more predictable the future, the more effectively players can plan ahead and define clear strategic goals.
Making precise forecasts for the construction sector is difficult, because there can be several years between a decision and its implementation — it’s a slowly turning ship. At present, it seems that the market is largely characterized by caution, with the exception of certain industrial investments related to the automotive sector, as well as strategic office renovations and hotel developments.
There is, however, ongoing activity in areas such as green building, energy-efficient solutions, and energy-related renovations. We are actively and proactively involved in these sectors and have strong professionals to meet client demands in these areas.
How have client expectations changed over recent years?
– L. G.: Looking at the past twenty years, both the level of prices and how investors relate to those prices have changed drastically. It’s clear that, in real terms, everything is much more expensive. On top of that, we’ve noticed that everyone pays far more attention to costs than they did ten, fifteen, or twenty years ago. In speculative, cash-flow–based projects built on long-term leasing, clients have become increasingly cautious and highly cost-conscious. In industrial investments, the most important factor is the performance of the sector: if there’s high demand, a new production facility is needed; if the sector is underperforming, then not.
– K. B.: It’s also important to note that the body of information an investor needs to launch a project today is far more complex and on a different scale than it was a few decades ago. The conscious structuring and modeling of investments also represents a significant evolution compared with the past.
The construction sector has seen rapid price increases in recent years. How long can this trend continue?
– K. B.: When it comes to rising costs, we can identify factors related to the broader environment as well as factors inherent to construction itself. By the latter, I mean that today we are building houses with higher technical standards and greater complexity than, say, ten years ago. The effects are most visible in the trades — mechanical, electrical, and various finishing works. If we look purely at the structural work, there hasn’t been a major change — the technical content of traditional construction per square meter hasn’t changed dramatically. But the technical content in specialized systems has developed enormously over recent years, and this inevitably drives some of the cost increase. Added to this are global market factors, such as rising raw material and energy prices.
– L. G.: It’s also important to note that while building has become numerically more expensive, purchasing power and demand have adjusted accordingly. So, if we compare the financial conditions from twenty years ago with today, I’m not sure the situation is drastically different. That said, there are local fluctuations: for example, four to five years ago, when the construction sector was heavily loaded, prices rose much more steeply because demand far exceeded construction capacity.
In recent decades, many commercial real estate projects have been completed in Hungary, but some office buildings now clearly require modernization, as they no longer fully meet current standards. There are reports of renovation projects for several major office buildings: does the company plan to participate in such projects?
– K. B: Indeed, there are several such projects emerging in the market, and 3E International is both able and willing to participate, because this represents a viable and definitely positive direction. In these cases, the investment objective has already been achieved — the construction costs have been recouped over time — and modernization allows the building to enter a new lifecycle. We clearly see demand for renovation and upgrading projects. However, it’s important to note that this approach isn’t suitable for every building: if the underlying design is poor or the building’s features are inadequate — for example, lacking raised floors or suspended ceilings — the possibilities for modernization and functional transformation are much more limited. Modernization often involves reconsidering the building’s function, and it’s best to address these two aspects together.
It’s also crucial to have a precise understanding of the existing systems, because only with accurate information can new designs be planned and costs properly estimated. Modernization can generally proceed in two ways: either by completely vacating the building or gradually, step by step, while it remains in use. Both approaches have advantages and disadvantages, which must be carefully weighed before the project begins. This, of course, is closely tied to the building’s intended function.
3E International’s core philosophy is to support construction projects as an engineering service provider from concept to completion. What does this market look like in Hungary, and what is the company group’s position?
– L. G.: 3E International is a leading player in the Hungarian market, operating among the top three to five companies. Overall, the market structure is healthy, with small, medium, and large players all able to succeed in Hungary. In the current market environment, which offers more limited opportunities, it’s a major advantage that our operations are transparent and our portfolio is sufficiently diversified. We are active in industrial investments, the office sector, commercial real estate, tourism projects, and infrastructure development alike.
That said, the market composition has shifted somewhat in recent years due to the emergence of Asian companies, which primarily participate in large-scale investments coming from the Far East, often collaborating with local players. We also have experience with Asian partners, both in completed and upcoming projects.
Since we’re talking about Asian companies, could the production of electric vehicles and their components bring new contracts?
– K. B: The production and recycling of electric vehicles and their components will clearly be important for construction companies and engineering service providers alike. In these projects, special attention must be paid to environmental considerations and the project lifecycle, so corporate social responsibility plays a key role here as well. Building the necessary infrastructure also involves significant costs and labor requirements.
Regulations in the market are constantly changing, such as amendments to the Construction Act. To meet these requirements effectively, it is often more efficient to implement projects with joint preparation. This means that involving the engineering consultant early in the planning phase is highly advisable.
– L. G.: As of January 1, 2025, the TÉKA — the Basic Regulation on Settlement Planning and Construction Requirements — replaces the OTÉK (National Settlement Planning and Construction Requirements). This represents a major shift in architectural and urban planning legislation. The new regulation brings comprehensive changes, streamlines and standardizes processes, while still allowing for consideration of local characteristics. New authorities and stakeholders have emerged in the regulatory framework, and responsibilities have shifted. In the case of state-funded projects, for example, the role of the project management company has become more prominent, cost management has gained greater emphasis, and the project manager — and even the engineer — is now recommended to be involved from the very beginning.
For market-driven projects — which, according to 3E’s business strategy, have traditionally represented a significant portion of the projects we serve and manage — this has already been standard practice. We welcome the change, as our company structure has been prepared for years to meet these increased demands. The value we add is maximized the earlier we can become involved in a project and its preparation.
Finally, with the holidays approaching, what are you most looking forward to during the year-end break?
– K. B: The beigli and finally having enough time for the people who matter most to me.
– L. G.: Taking a moment for all of us to pause, reflect on what happened over the past year, consider what lies ahead, and plan for the future. And it would be wonderful if there’s finally snow on the ground.