After a couple of record years with unusually high activity in the Scandinavian construction and civil engineering industry, growth has levelled off and the market now appears to be stabilising at a high level. Veidekke expects annual growth of 2% in the Scandinavian construction and civil engineering market towards 2020.
“Demand in the Scandinavian contracting market in general is good, and several parts of the market that were in a downturn are now showing signs of recovery. There is good demand for non-residential buildings, and the tendencies are now more positive in the residential market too. Growing market confidence among buyers, combined with a more balanced market, will provide a better starting point for new projects,” says Kristoffer Eide Hoen, Director of Analysis in Veidekke ASA. He also points to healthy growth in the civil engineering market in Sweden and Norway, with many large transport infrastructure projects under way and growing demand from the energy and water and wastewater sectors.
The report also highlights macro trends that will affect the contracting industry from 2020 onwards.
“In the longer term, some major demographic changes will have an impact on the product mix and competition focus in the contracting industry: More seniors and fewer younger people will entail new needs in the health and care sector and may also change demand in the housing market. At the same time, there will be tougher competition for workers, in an industry that is already facing capacity challenges. However, these are long-term trends that we are aware of and taking into account,” says Kristoffer Eide Hoen.
Our full analysis for the Scandinavian construction and civil engineering market can be read on veidekke.com
For press photos, see www.flickr.com/photos/veidekke, for more information, contact:
Kristoffer Eide Hoen, Director of Analysis, Veidekke ASA, tel. (+47) 976 75 434
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Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of building construction and civil engineering contracts, develops residential projects, maintains roads, and produces asphalt and aggregates. The company is known for its involvement and local knowledge. Its annual turnover is approx. NOK 32 billion, and around half of its 8,000 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.
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| Presentation Economic Activity Report September 2018 |