Introduction: Construction Download PDF

Companies that design, develop, build, or tear down structures, as well as companies that supply them, are all part of the construction industry. Currently in the U.S., the industry is depressed despite recently lowered interest rates. However, there is still activity in the private and government sectors, as well as small jobs such as remodeling. The outlook in Asia and Europe is more promising.

Risk Description

Construction Industry
The general negative trend gripping residential construction is attributable to a more difficult access to housing and the exhaustion of solvent demand: prices have increased much faster than incomes with the debt service burden growing substantially despite longer payment times.

Investors, meanwhile, have been confronted with dwindling return on investment as prices rise faster that rents. After several euphoric years residential construction has been in decline in the United States, Spain, Ireland, the United Kingdom, France, Italy, Denmark, Finland, and New Zealand. It has slowed markedly or is no longer expanding in Norway and Sweden. A moderate slowdown is expected in Canada and Australia. In Germany and Japan, meanwhile, theree has been no sign of a recovery in a sector that has been stagnating for many years.

Corporations (By Sales)

Sectoral Rankings

Construction	World	North America	Japan	Western Europe	Central Europe	Emerging Asia	Latin America	Middle East
April 2008	B-	C+	B-	B-	A-	A-	B+	A

Trade Statistics

Country	Exports (thousands)	Imports (thousands)	Net Trade (thousands)	Share of Exports (%)	Share of Imports (%)	Exports Growth (%)	Imports Growth (%)
Germany	39,046,092	22,803,293	16,242,799	11.121	6.485	18.215	11.239
China	34,046,557	11,278,925	22,767,632	9.697	3.207	40.443	4.778
Italy	29,976,565	11,638,633	18,337,932	8.538	3.310	13.175	6.297
Canada	24,059,137	11,689,441	12,369,696	6.852	3.324	10.228	5.229
United States	20,647,099	68,709,417	(48,062,318)	5.881	19.539	8.627	4.970