Growing optimism among a number of surveyed executives in the global construction industry suggests that 2014 will be a better year for construction than 2012.
Growing optimism among a number of surveyed executives in the global construction industry suggests that 2014 will be a better year for construction than 2012. According to a new forecast report from Timetric - a provider of online data, analysis and advisory services on key financial and industry sectors - the optimism is supported by a growing number of projects in the pipeline worldwide. Within the global construction industry, 53% of survey respondents are ’more optimistic’ about revenue growth expectations over the next 12 months as compared to the previous 12 months. 24% of the respondents are ’less optimistic’, while 22% expect ’no change’ in revenue growth.
According to a new report issued by Timetric entitled “The Global Construction Industry 2013–2014: Market Trends, Buyer Spend and Procurement Strategies in the Global Construction Industry,” executives from the global construction industry also expect to see increased levels of consolidation, with 50% of the respondents anticipating an increase in mergers and acquisition activity in 2014. Slow recovery in the global economy and weak market conditions, a growing desire for large construction companies to increase their global presence, and increased pressure of rising costs on small and medium-sized construction companies are considered the key drivers for mergers and acquisitions.
The forecast report identifies India, Brazil, the UAE, China and Saudi Arabia as promising emerging markets for 2014. India particularly has been identified as a key emerging market in the global construction industry due to growth in infrastructure development in housing, roads, ports, aviation infrastructure and power generation. The US, Canada, Singapore, Australia and the UK were also identified as primary growth markets, whereas France, Italy and Spain are expected a lower growth potential.