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Global Construction Industry Optimistic About Growth In 2014

The construction industry is more optimistic about revenue growth in 2013/14 than in 2012, according to new research by Timetric. Increased investments in IT infrastructure, public and private-sector construction projects, and growing demand for sustainable construction are likely to be key growth drivers.

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, the optimism is supported by a growing number of projects in the pipeline worldwide. Within the global construction industry, 53 percent of survey respondents are "more optimistic" about revenue growth expectations over the next 12 months as compared to the previous 12 months. Twenty-four percent of the respondents are "less optimistic," while 22 percent expect "no change" in revenue growth.

Executives from the global construction industry also expect to see increased levels of consolidation, with 50 percent 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 United States, Canada, Singapore, Australia and the U.K. were also identified as primary growth markets, whereas France, Italy and Spain are expected a lower growth potential.

 
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