Global Construction - Regional Overview

Developed Regions:

  • North America: Strong non-residential construction activities (education, healthcare, and industrial facilities) will be the key determinants of the construction output in the region. The region is poised for stable growth until 2019
  • Europe: Followed by the decline in the sub-segments of construction and the Brexit impact in 2016, the labor cost has increased and construction output has decreased, as majority of the UK’s workforce are immigrants, but this is expected to stabilize in 2018 with newer construction projects in the UK, Germany, France, and Italy creating employment opportunities across the sectors

Developing Regions:

  • APAC: The percentage contribution of APAC in the global construction spend is expected to reach approximately 45 percent in 2020. China has already begun to slow significantly in the near term, ceding its position as the fastest-growing Asian market to India. However, increasing demand for consumer-oriented construction will the key driver for the next 3 –4 years
  • South America: The region is facing slow growth, which is expected to continue for the next 2 –3 years. Brazil’s construction industry is shrinking in real dollar values, while Argentina and Colombia continue to be the bright spots with better growth, driven by strong demand from the industrial and manufacturing construction activities

Brexit—Impact & Forecast on Construction Services

  • 15 percent of the construction labor in the UK is from the EU, which will affect the upcoming construction and maintenance projects
  • FDI investment is expected to contract over the next 10–12 months, as major policy changes are expected, due to the Brexit
  • A previously allocated budget of $9 billion for the EU will be diverted to infrastructure spend for the UKSource: Beroe AnalysisInvestmentsMaterialLong-Term ImpactLong-Term ImpactLong-Term