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Construction - The industry has sprung back into life since the global recession, but challenges remain

Construction - The industry has sprung back into life since the global recession, but challenges remain

  • July 2017
  • 15 pages
  • ID: 5164877
  • Format: PDF
  • By MarketLine

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Construction - The industry has sprung back into life since the global recession, but challenges remain

Summary
The global construction industry has experienced a difficult period in recent years. After the global recession in 2007; the industry was directly affected by a huge drop in available investment from banks and financial institutions. It has become increasingly evident though, that financial institutions have regained their confidence in the industry and as such, have been backing big projects. However, there is concern that the levels of growth currently being seen are not going to last much longer and the primary source of the current investment is not providing the kinds of returns that were expected. The major factor in the industry is just how much longer China will continue to bank roll the industry and despite enormous investment programs such as the Belt and Road program; eventually the construction industry will need to find more organic methods of growth.

Key Questions Answered

- What is happening in the construction industry at the moment and why is it growing well?
- Who is profiting from this and what the factors that are influencing the market?
- How rosy is the future of the market?

Scope
- Learn why the market has been growing well.
- Examine how long this good period is expected to last.
- Look at the major industries around the world including the UK, USA, China and India to see what is happening locally.

Reasons to buy
- Overall the US construction industry hit year on year growth of 7.7% in 2016, a very substantial amount of growth for a highly developed industry already worth in the region of $1.1tn. Forbes has concluded that of the top growing industries in the US currently, seven of them are construction industry segments and that market players have posted substantial gains for 2016.
- Despite the inevitable slowdown of the leviathan Chinese construction industry, the country is still producing 10% plus year on year growth and is expected to continue to do so until the end of the decade. What makes the Chinese industry unique however is that the government is determined to continue to pump money into the industry despite all the risks.
- Of all the global markets India has the most staggering demand for construction. At current population and migration rates 31,000 homes need to be built every day in order for India to keep up with its current demand for homes and housing. Construction is one of the very largest industries in the country and on top of this is the second highest industry for foreign direct investment in India.

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