The German construction industry has returned to growth and is in the best sh ape it has been for over a year . As such, we are maintaining our forecast for growth in the industry at 1. 6 % year-on-year in real terms driven largely by continued investment in the renewables sector and an uptick in r esidential building activity . We expect growth to reach 2% in 2015 . Ho wever , we note a lack of investment across the board will keep growth muted over our forecast period to 2023.
Low levels of domestic investment remains are largest concern for the market, which will largely go towards maintaining and upgrading ageing infrastructure rather than major new projects. We highlight that overall investment levels remain muted and major projects will be subject to constrained budgets and strong opposition, as experienced by Stuttgart 21. Over our ten-year forecast period to 2023, the construction industry will average real growth of 1.4%.
Full Report Details at
- http://www.fastmr.com/prod/888039_germany_infrastructure_report_q4_2014.aspx?afid=101
Key Trends And Developments
* The 2015-2018 federal budget has been adopted by the coalition government, which will see spending on transport infrastructure reach EUR11.9bn over the time period. However, pledges to invest a total of EUR23bn after the election seem unlikely to appear as the government aims to keep a tight rein on expenditure.
* Low interest rates have made mortgages affordable and German real estate has been viewed as a safe haven for European investors. As such, there has been significant growth in house prices, which should spur the residential sector.
* Due to unfavourable economics, gas-fired regeneration power plants are becoming unprofitable. Also, EU legislation will hit the coal fired generation project pipeline. As such, it is the renewables sector which will drive growth in the energy and utilities sector, and the industry should experience more sustainable growth as the government has decided to limit subsidies to the first 2.5GW of capacity which are brought online each year -...
The Germany Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Germany Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the German infrastructure and construction industry.
Key Benefits
* Benchmark BMI's independent infrastructure industry forecasts for Germany to test other views - a key input for successful budgetary and planning in the German infrastructure market.
* Target business opportunities and risks in the German infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Germany.
* Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.
These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).
Industry Trends
Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:
Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.
Building Materials Overview
The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.
Business Environment Rankings
BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry & Economic Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).
Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).
Company Profiles
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.
For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
read full article