MARKET RESEARCH
Construction Sector
The construction industry in
the world
The scale of the global market in 2016, according to Business Wire, was approximately 8,8 trillion dollars (around 7,200 billion euros). China was the largest market with a “market value” of around 3,3 trillion dollars (2700 billion euros).
To Business Wire, the construction industries global market should hit 10,5 trillion dollars (8,600 billion euros) in 2023, with an estimated Compound Annual Growth Rate (CAGR) of 4.2% between 2018 and 2013.
Therefore, the global construction industry perspectives are very positive, having opportunities both in the residential market, non-residential market and infrastructures market. The principle motors of this growth are the increase of search about housing and infrastructures needed to support population growth, especially for the urban population.
It shall be noticed that this growth dynamic will be accompanied by an increasing search in the environmental friendly constructions, with technologies that rise the lifetime of the infrastructures and information systems that allow an efficient management.
The construction industry in
Portugal
In the construction bulletin, published in February 2018 by the Portuguese Federation of Construction and Public Works Industry (Fepicop), anticipating an increase in the production value of 4,5% although, it has been verifying a decrease in the number of adverts in terms of public contests of public works launched in January (-58% year-on-year). This confirmed the August 2017 market slowdown trend.
According to Fepicop, with last 2017 trimester realization of local elections, the increase of public works in the contest was intensified starting in January 2017, reaching the limit in August (+91% year-on-year). This was the moment when it slowdown until the +65% calculated in the end of December.
Global Production of the Portuguese construction sector in 2016:
10.741,8 Million euros;
Estimated growth in 2017: 5,9%;
Estimated growth in 2018: 4,5%;
Source: Fepicop
Residencial Buildings
2.730,0 million euros
Non-Residencial Buildings
2.730,0 million euros
Civil Engineering
2.730,0 million euros
Agreeing with the statistical information form the central balance of banco de Portugal (Dez. 2016), in 2015 the sector of construction had 11% of the total enterprises from Portugal (44 thousand businesses). So, the sector represented 9% of the number of people at the service and 6% of the business volumes. As for 2011, the construction sector relevance in the total of business has decreased, due to consecutive reductions in the number of enterprises from that sector. The importance of the sector has decreased 1,9% in the number of businesses, 3,2% in the businesses values and 2,9% in the number of people in the service.
It is stated, in the same report that, in relation to 2014, the number of enterprises in activity in the construction sector has decreased 1,9%, contrasting with the increase of 1,2% resisted in the total of businesses. For each enterprise of the sector that ended their activity, 0,8 businesses were created having a value of 0,4 p.p. (bellow the birth ratio/ total mortality of businesses).
The building constructions presented a higher preponderance, representing 59% of the enterprises, 44% are the people and the service, and 42% of the sector businesses volume. The breakdown by the activity segments of the number of people and service and the businesses volume is more homogeneous. Even thought it only represented 6% of the enterprises, the civil engineering weight is featured: 31% of the business volume and 23% of the people and service from the sector.
Still, according to the statistics information note from the central balance of banco de Portugal, the distribution by dimension of businesses in the sector was similar to the total of them: 88% of the enterprises were microbusinesses, 12% were PME and only 0,1% were big businesses. However, the PME represented 51% of the business volume and 50% of the number of people and service from the sector (43% and 45% in the total). The huge businesses were less relevant in the construction sector than on the total enterprises.
