Construction Outlook in China

Construction Outlook in China

Construction outlook in China among world’s best
The $5 trillion construction industry in China is one of the fastest growing in the world. A rapidly expanding domestic economy, continuing efforts to upgrade physical infrastructure, sustained strength in foreign investment funding, healthy demand for Chinese manufactured goods, ongoing urbanization and further population and household growth will all boost construction spending in China.

Nonbuilding construction to be fastest growing sector
Nonbuilding construction will be the fastest growing sector through 2012. Growth will be fueled by government initiatives to expand and upgrade the country’s physical infrastructure, especially its highways, railways and subway systems. Utilities construction will also contribute to nonbuilding construction spending gains, as the government continues to increase the country’s power generation capacity and improve electricity transmission networks, as well as expanding and improving municipal water supply coverage and natural gas distribution.

Nonresidential building represents the largest spending category in China, reflecting the nation’s emergence as an economic powerhouse over the last decade and its position as the largest producer of manufactured goods in the world. China’s ongoing industrialization and modernization will help to boost investment in manufacturing, office and commercial facilities.

Real residential building construction expenditures will grow at a more modest pace through 2012. Advances will be spurred by rising employment and personal income levels, further urbanization of the population, and increasing average per-capita living space in both urban and rural areas. However, government efforts to prevent the real estate market from overheating (for example, raising the one-year lending rate and restricting second home purchases) and a deceleration in household growth will provide an offsetting influence, preventing demand from advancing at a faster rate through 2012.

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INTRODUCTION

I. EXECUTIVE SUMMARY

II. MARKET ENVIRONMENT

General

Economic Overview

Recent Economic Performance

Economic Outlook

Demographic Overview

Population

Urbanization

Households

Industrialization & Manufacturing Trends

Labor Force & Employment Patterns

Personal Income Trends

Banking System & Regulations

Currency Exchange Rates

Inflation & Pricing Patterns

Legal & Regulatory Environment

Construction Technology & Quality

The Five-Year Plan

III. OVERVIEW

General

Construction Expenditures by Type

Construction Expenditures by Market

International Environment

Construction Expenditures for Selected Countries

Foreign Participation in China’s Construction Industry

IV. RESIDENTIAL BUILDING

General

New Housing

Single Family

Multiple Family

Additions & Alterations

Maintenance & Repair

Housing Stock

Single Family

Multiple Family

Ownership

Living Space

Urban

Rural

V. NONRESIDENTIAL BUILDING

General

New Construction

Additions & Alterations

Maintenance & Repairs

Structure Types

Industrial

Institutional

Office & Commercial

Other

Nonresidential Building Stock

VI. NONBUILDING CONSTRUCTION

General

New Construction

Maintenance & Repair

Structure Types

Roads & Other Transportation Infrastructure

Utilities

Other

VII. REGIONAL TRENDS

General

Regional Demographics & Economic Trends

Population Patterns

Economic Outlook

Regional Construction Expenditures

Central-North

Overview

Construction Expenditures

Northeast

Overview

Construction Expenditures

Central-East

Overview

Construction Expenditures

Central-South

Overview

Construction Expenditures

Southwest

Overview

Construction Expenditures

Northwest

Overview

Construction Expenditures

VIII. INDUSTRY STRUCTURE

General

Industry Composition

Market Share

Marketing

Financial Issues & Requirements

Capital Expenditures

Project Funding

Company Profiles

Aker Kvaerner ASA, see Aker Solutions ASA

Aker Solutions ASA

Anhui Construction Engineering Group Company Limited

Balfour Beatty plc

Bechtel Group Incorporated

Beijing Capital Group Company Limited

Beijing Chang Cheng Bilfinger Berger Construction Engineering, see Beijing Construction Engineering Group and Bilfinger Berger

Beijing Construction Engineering Group Company Limited

Beijing Urban Construction Group Company Limited

Bilfinger Berger AG

Black & Veatch Holding Company

Bouygues SA

Bovis Lend Lease Projects Shanghai Company, see Lend Lease Corporation

BSF China Company, see Bechtel Group, Foster Wheeler and Sinopec Engineering

China Communications Construction Company Limited

China Electric Power Technology Import & Export Corporation

China Harbour Engineering Company, see China Communications Construction Company

China Huashi Enterprises Company Limited

China International Water & Electric Corporation

China Jiangsu Construction Corporation

China Metallurgical Group Corporation

China National Machinery Industry Corporation

China Petroleum Engineering & Construction Group Corporation

China Railway Construction Corporation

China Railway Engineering Corporation, see China Railway Group

China Railway Group Limited

China Road and Bridge Corporation, see China Communications Construction Company

China State Construction Engineering Corporation

China Zhongtie Major Bridge Engineering Group Company, see China Railway Engineering Corporation

Chinese Military Industry LLC, see Fujian Construction Engineering Group Company

Chiyoda Corporation

CISDI Engineering Company Limited, see China Metallurgical Group Corporation

Colas SA, see Bouygues SA

CTCI Corporation

Dragages Hong Kong Limited, see Bouygues SA

Fluor Corporation

Foster Wheeler Limited

Fujian Construction Engineering Group Company

Gammon Construction Limited, see Balfour Beatty

Guangdong Construction Engineering Group Corporation

Guangdong Overseas Construction Group Company

Guangsha Construction Group Company Limited

Hebei Construction Group Company Limited

Hip Hing Construction Company, see NWS Holdings

HOCHTIEF AG

Jingding Engineering & Construction Company, see CTCI Corporation and Sinopec Engineering

Leighton Asia Limited, see HOCHTIEF AG

Lend Lease Corporation Limited

NWS Holdings Limited

Pat Davie China, see Shui On Construction and Materials

Shaanxi Construction Engineering Group Corporation

Shanghai Construction Group General Company

Shui On Construction and Materials Limited

Sinohydro Corporation

Sinopec Engineering Incorporated

Tianjin Construction Engineering Group Holding Company

URS Corporation

VSL International Limited, see Bouygues SA

WISDRI Engineering & Research Incorporated, see China Metallurgical Group Corporation

Xinjiang Construction Engineering Group Company

Zhejiang Construction Investment Group Corporation

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table

SECTION II -- MARKET ENVIRONMENT

1 Gross Domestic Product of China

2 Population of China

3 Households in China by Region

4 Manufacturing Value Added in China

5 Urban Labor Force & Employment in China,

6 Per Capita GDP in China by Region

7 Interest Rates in China

8 Chinese Currency Exchange Rates, 1997-2007

9 Construction Pricing Patterns in China

SECTION III -- OVERVIEW

1 Construction Expenditures in China by Type

2 Construction Expenditures in China by Market

3 Construction Expenditures for Selected Countries, 1997-2007

4 Foreign Participation in China’s Construction Industry

SECTION IV -- RESIDENTIAL BUILDING

1 Residential Building Construction Expenditures in China by Type

2 New Housing Construction in China

3 Residential Building Addition & Alteration Expenditures in China

4 Residential Building Maintenance & Repair Expenditures in China

5 Housing Stock in China by Type & Ownership

6 Average Living Space in China

SECTION V -- NONRESIDENTIAL BUILDING

1 Nonresidential Building Construction Expenditures in China by Type

2 Nonresidential Building Construction Expenditures in China by Structure

3 Nonresidential Building Stock in China

 
 

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More Details

Government’s “Go West” strategy to spur Northwest, Southwest regional growth
China consists of numerous distinct regional markets characterized by different culture, language and levels of economic development. The Northwest and Southwest regions are much poorer than other parts of the nation and remain largely underdeveloped, but are being targeted by the government’s “Go West” strategy, which will result in sizable increases in infrastructure-related construction activity in these areas. Construction expenditures in the Northwest and Southwest regions are expected to enjoy the fastest growth of any region in China through 2012. However, the Central-East and Central-South regions will remain home to well over half of China’s total population and will account for close to two-thirds of all economic output in 2012, stimulating substantial construction demand.

Study coverage
Worldwide, producers and distributors of construction materials, machinery, packaging and other products recognize the tremendous market potential that China has to offer. However, planning for expansion into China is difficult due to the lack of reliable market information. Freedonia's China studies provide you with the information and analysis you need to plan for your company's positioning in China. Freedonia has broken down construction activity in China in a helpful fashion.

Construction Outlook in China is a new Freedonia industry study available for $5100. It presents historical demand data (1997, 2002, 2007) plus forecasts (2012, 2017) by market and region. The study also assesses market environment factors, evaluates company market share and pro- files 42 industry competitors.