Category Archives: Construction

Italy – reduction of the deficit receives top priority causing moderate growth in all construction markets

While the Italian government gives reduction of the deficit top priority, the country still suffers from poor credit opportunities and high unemployment rates. It is projected that the growth of all construction markets will be moderate.

Growth of the construction market remains moderate

The Italian construction industry is expected to remain moderate with a slightly positive growth at a CAGR of 0.28% by 2016. This comes as good news for Italy after recording a decline of -3.42% CAGR from 2007-2011. Residential construction is the largest market within the construction industry, with a 57.3% share of the total industry value and a CAGR of -2.29% from 2007-2011.

Cautious consumer spending has a negative effect on commercial construction

In the latest budget, the government increased VAT, which had an adverse effect on the retail sector. Consumer spending remains cautious as a result of rising unemployment rates, minimal wage increases and a bleak economic outlook. This has a negative effect on the commercial construction market which recorded the largest decline of all construction markets with a CAGR of-6.2% from 2007-2011.

Tough economic times challenge the institutional and infrastructure construction markets

The institutional construction market is expected to record a CAGR of -0.45% by 2016. Factors such as bleak economic conditions, difficulties in sourcing credit, a lack of employment opportunities and government spending cuts indicate a deflated institutional construction market in the coming years. Infrastructure construction is forecast to grow at a CAGR of 0.63% by 2016. The current challenge in this regard is the weak levels of investor confidence and the presence of austerity measures taken by the government.

Infrastructure is booming in Singapore

Things are looking bright for Singapore’s construction industry today. Boosted by public spending many new infrastructure projects are on the way. 

Today Singapore’s overall construction industry is valued US$22 billion. With a CAGR of 4.88% the industry will be worth US$28 billion by the end of 2016. According to a new report from Timetric, infrastructure projects take up 32% of the total construction market with a total value of US$7.1 billion.

Infrastructure boosted by public sector projects

In 2012 Singapore’s government allocated US$ 373.8 million to boost the rail and road infrastructure nationwide. Most profoundly this resulted in the construction of the Marina Coastal Expressway, the Keppel Viaduct and the Downtown Line – with further transit projects in the pipeline. When the Downtown Line is fully complete by the end of 2017, it will be the longest driverless underground line in Singapore serving about half a million commuters daily.

The increased public spending will not just boost infrastructure, but will have a positive effect on all construction markets in the coming years. The residential construction market is the second largest market, expected to record a CAGR of 4.67% to a value of US$7.6 billion by the end of 2016. The industrial construction market is forecast to record a CAGR of 4.27% to a value of US$5.16 billion by the end of 2016.

Investments in infrastructure increase employment

Today the construction industry is a key employer in Singapore, accounting for 12.30% of the country’s workforce. As a consequence of the public investments in infrastructure there has been a high demand for manpower and employment has increased with 46.3% in only one year.

Asia overtakes Europe and North America in the earthmoving equipment market

According to a new report from Timetric, the Asia-Pacific region overtakes Europe and North America when it comes to heavy construction machinery and earthmoving equipment. With a 57.8% market share the Asia-Pacific market is now the largest market in the world, followed by Europe with 22.0% and North America with only a 12.4% market share.

Due to the economic uncertainty in Europe and sluggish growth in the US these numbers are expected to be reduced even further. The report finds that by 2016 the European market share will decline to 18.2% whereas the market share in North America will fall to only 9.8%.

Growing economies in Asia-Pacific, in particular China and India, has resulted in an increasing demand for construction equipment. This growth is set to continue as the Asia-Pacific market is estimated to increase its share to 64.5% by 2016.

Today the global earthmoving market is worth US$78.7 billion Between 2007 and 2011 the global compound annual growth rate was as little as 2.50%. The reason for this low growth rate is set to be the 23.9% decline in annual growth recorded in 2009. This was the worst year in the global economic crisis, which resulted in a declining demand for construction work and heavy machinery. Positive news is that the compound annual growth rate is expected to increase to 7.98% over the forecast period 2012-2016, following an anticipation of the future growth of the global construction industry.

 

 

Residential market stands alone

Denmark’s residential construction market CAGR expected to grow 1.44%, while the industry outlook remains bleak.

LONDON –The Danish residential construction market is expected to record positive growth in 2014 with a CAGR of 1.44% over the forecast period, after recording a decline of 0.3% in 2013.  Residential construction constituted the largest market within the construction industry, accounting for a 46.8% share of industry output in 2012. Overall, the Danish construction industry recorded a negative growth CAGR of -3.31% during 2008 -2012, residential construction emerged as sole market with any expected growth.

Residential construction markets expected to grow despite relatively strong property prices

Accounting for a 46.8% share of industry output in 2012, residential construction constituted the largest market within the construction industry. Despite a decline in property prices during the past few years, they remain considerably higher compared with neighboring countries, leaving the residential market in a fragile situation

Industrial construction market expected to register CAGR 0.33% by 2017

Industrial construction recorded a CAGR of -3.99% over 2008 -2012, the largest decline of all the construction markets. Owing to uncertainty in the global economy, exports declined, resulting in the decline of local demand which affected the manufacturing industry in particular. With the Eurozone crisis continuing to fester and many Danish trade partners suffering as a result, Timetric forecasts the Danish industrial construction market to register a CAGR of 0.33% over the forecast period.

Due to a highly-developed transport network the infrastructure market only recorded a mild decline

Owing to strong transport networks of roads, railways, airports and ports, the infrastructure market was only slightly impacted by the economic crisis. Supported by 130 commercial ports and 30 airports including five international airports, with Copenhagen’s airport acting as Europe’s main gateway to Scandinavian countries,  the infrastructure construction market to emerged reasonably unaffected recording a CAGR of ‑1.74% over 2008 -2012.

Weak economic growth is affecting urban development

In 2012, the Danish commercial construction output valued DKK26.3 billion (US$4.9 billion), recording a CAGR of -3.68% during 2008 – 2012. With the Danish economy remaining in turmoil and caught in a period of sluggish growth, the demand for commercial properties such as retail, office and leisure and hospitality remained low. As a result of the continuing gloomy conditions across most of Western Europe, the main trading partner for Denmark, Timetric expects the commercial construction output to register a CAGR of 0.88% by 2017.

Infrastructure The Only Light In Ireland’s Bleak Construction Market

Tough economic times have seen a decline across Ireland’s construction industry, but the infrastructure sector is set to record positive growth between 2013 and 2017.

Despite a significant decline in the Irish construction industry – a CAGR of -28.25% between 2008 and 2012 – infrastructure construction is projected to record a CAGR of 1.03% between 2013 and 2017. This growth can primarily be attributed to various transport plans and government initiatives that are seeking to stimulate the economy.

Residential Construction

Depressed economic conditions as a result of austerity measures are making it difficult for Irish households to repay housing debt. Furthermore, prospective buyers – especially those taking their first steps onto the property ladder – are finding it difficult to secure mortgages without being asked to pay often prohibitively large deposits. Consequently, despite residential construction’s being the largest construction market in Ireland – accounting for 34.7% of total construction output in 2012 – it was also one of the worst performing between 2008 and 2012, recording a CAGR of -29.37%.

Commercial Construction

High unemployment, low wage growth, and a depressed economic outlook have rendered customer spending in Ireland cautious, which combined with the fear of government spending cuts and tax hikes

Customer spending in Ireland has been rendered cautious by high unemployment, low wage growth, and a depressed economic outlook. Combined with business’ fear of making large investments as a result of government spending cuts and tax hikes, this has had a significantly detrimental effect on Ireland’s commercial construction market, which recorded the most significant decline of all sectors: a CAGR of -32.93% between 2008 and 2012.

Industrial Construction

Uncertainty in the global economy had a negative effect on exports, affecting the manufacturing industry in particular. This, coupled with the more general economic malaise, saw the Irish industrial construction sector record a CAGR of -31.36% between 2008 and 2012 – the second largest decline of all Irish construction markets.

Infrastructure Construction – The Light In Ireland’s Construction Market

Although all sectors of Irish construction registered negative growth between 2008 and 2012, a low benchmark interest rate, various transport plans, and government initiatives to stimulate the economy are expected to encourage growth in the infrastructure sector between 2013 and 2017.

Business Opportunities in Energy Infrastructure Construction in BRIC

Business Opportunities in Energy Infrastructure Construction in BRIC

Executive Summary

China is the largest energy infrastructure construction market among the BRIC countries, followed by India, Russia and Brazil. The construction cost of Brazilian energy infrastructure projects recorded a CAGR of 6.34% during the review period, and is projected to record a CAGR of 11.01% over the forecast period. The growth will be driven by Brazil’s ten-year electrical energy plan as per which the country is expected to triple its renewable energy usage by 2020 and create significant opportunities in wind energy construction over the next five years. The construction cost of Russian energy infrastructure projects recorded a CAGR of 15.79% during the review period, and is projected to record a CAGR of 13.19% over the forecast period. Over the forecast period, Russia is planning to invest US$320 billion in cleantech energy as the emphasis on renewable energy increases amid growing concern regarding the environmental impact of traditional energy sources. Overall, Russia is aiming to produce 4.5% of its energy from renewable sources by 2020, and this focus on cleantech energy is therefore only expected to increase over the forecast period. The construction cost of Indian energy infrastructure projects recorded a CAGR of 20.66% during the review period and is projected to record a CAGR of 22.52% over the forecast period. As part of the country’s 12th Five-Year Plan (2012-2017) India plans to invest a total of US$143 billion in the construction of oil and gas pipelines. This substantial investment is expected to offer numerous business opportunities to infrastructure companies such as L&T-Valdel Engineering Limited (LTV) and Engineers India, both of which have expertise in oil and gas pipeline projects. The construction cost of Chinese energy infrastructure projects recorded a CAGR of 19.22% during the review period and is projected to record a CAGR of 21.1% over the forecast period. China plans to invest a total of RMB11.1 trillion into power generation projects by 2020. These investments are expected to offer substantial growth opportunities to infrastructure construction companies operating in China.

Key highlights of this title

  • The Indian power infrastructure construction sub-category recorded the fastest growth among the BRIC countries during the review period, while China was the largest in terms of value in 2011.
  • The Chinese oil and gas infrastructure construction sub-category recorded among the fastest growth among the BRIC countries during the review period, and was also the largest market in terms of value in 2011
  • In Brazil, the growth is expected to be primarily driven by the cleantech energy project type, which accounted for the largest share of power infrastructure construction during the review period and is expected to record further growth over the forecast period
  • In Russia, the growth is expected to be primarily driven by the oil and gas sub-category, which is expected to account for approximately three quarters of Russia’s total energy infrastructure costs in 2012
  • In India, the growth is expected to be primarily driven by the power sub-category, which is projected to account for majority of India’s total energy infrastructure construction costs in 2012
  • Over the forecast period, the growth of Chinese energy infrastructure construction market will be largely driven by investments in power generation projects

Scope

This report provides a comprehensive analysis of energy infrastructure construction market in BRIC countries:

  • It provides historical values for the BRIC energy infrastructure construction market for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
  • It offers a detailed analysis of market size by cost type and by construction activity
  • It offers a detailed analysis of market size separately for oil and gas, and power sector
  • It details the regulatory framework for the energy infrastructure construction industry in BRIC countries
  • It covers an exhaustive summary on key trends, drivers and issues in the energy infrastructure construction industry
  • It details the competitive landscape in energy infrastructure construction industry of BRIC countries

 Reasons to Purchase

  • Gain insights into the energy infrastructure construction industry of BRIC countries
  • Identify the key market trends and opportunities for both existing companies and prospective new market entrants
  • Analyze the regulatory environment governing the industry in BRIC countries, enabling to identify the options available to enter the market by analyzing the business environment in each nation
  • Gain insights in to the marketing strategies used by energy infrastructure companies

 More information available at:

http://bricdata.com/research/report/CN0505MR/

Business Opportunities in the Water and Sewage Infrastructure Construction in BRIC

Business Opportunities in the Water and Sewage Infrastructure Construction in BRIC

Executive Summary

Brazilian water infrastructure construction market recorded significant growth over the review period (2007–2011) during which construction grew at a CAGR of 16.15%. Government spending and reforms were the key drivers behind the growth of Brazil’s water and sewage infrastructure construction market.  The Russian sewage infrastructure construction market recorded significant growth during the review period and posted a CAGR of 30.98% during the review period. Over the forecast period, it is projected to grow at a CAGR of 15.34%. An increase in public-private partnership (PPPs), highway construction and enhanced levels of government spending were the key drivers of sewage infrastructure construction activity during the review period.  The Indian water infrastructure construction market is projected to grow at a CAGR of 13.22% over the forecast period.  The Chinese water infrastructure construction market is projected to grow at a CAGR of 16.07% over the forecast period. This growth is expected to be mainly driven by China’s 12th five-year-plan, in which RMB430 billion has been allocated for the construction of new pipelines and treatment plants. The government has also set guidelines to achieve an urban treatment scale of 45.69 million cubic meters per day by 2015.

 Key highlights of this title

  • China accounts for the majority of the BRIC countries’ water infrastructure construction market, measuring a 64.5% share in 2011. It was followed by India with a 15.2% share, Brazil, with a share comprising 10.5% and Russia, which accounted for 9.8%.
  • China accounts for a 53.2% share of the BRIC sewage infrastructure construction market. It was followed by Russia, with a share of 18.6%, India, which accounted for 15.2% and Brazil, which comprised 13.0%.
  • Brazil’s positive economic outlook is expected to drive growth within the water and sewage infrastructure construction market.
  • In Russia, the growth is expected to be primarily driven by an increase in public-private partnership (PPPs), highway construction and enhanced levels of government spending.
  • A push towards investment, as announced in the Indian government’s 12th five-year-plan, is expected to support growth in terms of water infrastructure construction activity in India. A total of INR2,715 billion has been allocated for the construction of new, and the development of exiting, water infrastructure

Scope

This report provides a comprehensive analysis of water and sewage infrastructure construction market in BRIC countries:

  • It provides historical values for the BRIC water and sewage infrastructure construction market for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
  • It offers a detailed analysis of market size by cost type and by construction activity
  • It offers a detailed analysis of market size separately for water and sewage sector
  • It details the regulatory framework for the water and sewage infrastructure construction industry in BRIC countries
  • It covers an exhaustive summary on key trends, drivers and issues in the water and sewage infrastructure construction industry
  • It details the competitive landscape in water and sewage infrastructure construction industry of BRIC countries

 Reasons to Purchase

  • Gain insights into the water and sewage infrastructure construction industry of BRIC countries
  • Identify the key market trends and opportunities for both existing companies and prospective new market entrants
  • Analyze the regulatory environment governing the industry in BRIC countries, enabling to identify the options available to enter the market by analyzing the business environment in each nation
  • Gain insights in to the marketing strategies used by water and sewage infrastructure companies

More information available at:

http://bricdata.com/research/report/CN0506MR/