Construction Outlook in China Market
London (PRWEB) September 24, 2013 -- Demand to grow 8.5% per year through 2017
Construction expenditures in China are expected to increase 8.5 percent per year in real terms through 2017. Ongoing urbanization and industrialization, rising income levels, further population and household growth, and the government’s continuing efforts to expand and upgrade physical infrastructure in the country will support healthy growth in construction spending. However, growth will moderate notably from the 16 percent annual gains during the 2007-2012 period, when gross fixed capital formation was boosted by the government’s stimulus program to counter the global financial crisis in 2009.
Construction expenditure markets nearly evenly split
Construction expenditures in China are nearly equally split among residential buildings, nonresidential buildings, and nonbuilding structures. Each of these segments accounted for around one-third of the total construction market in 2012. Nonbuilding construction will see the fastest growth (in real terms) through 2017. Increases will benefit from stateled efforts to expand and upgrade the country’s transportation infrastructure, such as the “7918” highways network, subway systems in major cities, and several airports. Utilities construction will also contribute to nonbuilding construction spending gains, particularly in fast growing urban areas, as the government continues to expand and improve access to such infrastructure as water supply, sewage treatment, rubbish disposal, and gas distribution. Further efforts to increase the country’s power generation capacity and improve electricity transmission networks will also drive spending on nonbuilding construction
Nonresidential buildings to exhibit best annual gains
Inflation-adjusted nonresidential building construction expenditures are forecast to post the best annual gains through 2017. Growth will be led by strong advances in industrial building construction. The manufacturing sector in China will continue to expand quickly, benefiting from robust increases in consumer spending for manufactured goods, accommodative government policies, and foreign direct investment. Spending on residential buildings will be slightly less through 2017, with market gains primarily driven by continuing population migration from rural to urban areas and supported by rising personal income levels. Despite strong gains in housing construction over the last decade, living conditions remain poor for some residents due to uneven distribution of housing ownership in urban areas in China.
Central-East to remain largest regional market
The Central-East region, home to about one-third of the country’s total population and economic output, supports the largest regional construction market and will account for the majority of total construction spending in China in 2017. Construction expenditures in the Northwest region are expected to enjoy the fastest growth, benefiting from the government’s “Great Western Development” strategy and rising personal incomes, which will result in relatively stronger increases in construction spending on infrastructure and manufacturing facilities and housing.
Study coverage
These and other findings are contained in Construction Outlook in China, a 235- page industry study from Freedonia’s Beijing office, available for $5300. It presents historical demand data (2002, 2007, 2012) plus forecasts (2017, 2022) for demand by market, type of structure, and region of China. This study also details market environment factors, assesses company market share, and profiles 38 industry competitors.
Summary
This study analyzes the construction industry in China. The following types of activities are covered: new building and nonbuilding (bridges, dams, roads, etc.) construction, building additions and alterations, and maintenance and repair construction. Contractor installation of equipment (such as central air conditioning and heating systems, elevators, and sprinkler systems) that forms an integral part of a new or refurbished structure is included here as well. The Special Administrative Regions of Hong Kong and Macau are excluded from the scope of the study. These regions remain to a great extent economically independent from the rest of China, even though they returned to the People’s Republic of China in the late 1990s. Taiwan, which is economically independent from the rest of China and not under the administration of the central government, is also excluded from the scope of this study.
Historical data for 2002, 2007, and 2012 and forecasts for 2017 and 2022 are provided for construction expenditures in China by market (residential building, nonresidential building, and nonbuilding construction) in both current yuan (including inflation) and constant 2011 yuan. Statistics are also provided for construction expenditures by region and by type (new, building additions and alterations, and maintenance and repair), for construction industry revenues, and for international trade in construction services, valued in constant 2011 yuan. Data is provided as well for new housing construction (in square meters and units), residential building stock (in square meters and units), average living space for rural and urban residents (in square meters), and nonresidential building stock (in square meters).
The renminbi (or RMB) is the official currency of the People’s Republic of China, and the base unit of the renminbi is the yuan. The term “yuan” is used throughout this report when referring to currency amounts. The overall value of construction expenditures is also provided in US dollars. Generally, the official currency exchange rate is used in each year to convert current yuan to current dollars (with the July 3, 2013 exchange rate being used for 2017 and 2022).
In addition, major construction contractors active in China are identified and profiled, and key competitive variables are discussed. The entire report is framed within the Chinese construction industry’s economic and market environments, and therefore environmental variables affecting construction activity in the country (such as government plans and regulations, inflation and interest rates, manufacturing value added, population trends, and overall economic performance) are emphasized. Construction market share data by enterprise presented in the Industry Structure section are estimated based on consultation with multiple sources. Tabular details may not always add to totals due to rounding.
Macroeconomic and demographic indicators presented in this study were obtained from The Freedonia Group Consensus Forecasts dated April 2013. A wide variety of primary and secondary sources were also used in the compilation of this report. These include Chinese government statistical agencies (principally the National Bureau of Statistics of China), other Chinese government agencies (including the Ministry of Commerce and Ministry of Housing and Urban-Rural Development), the China International Contractors Association, International Monetary Fund, Organisation for Economic Cooperation and Development, United Nations, US Department of Agriculture, US State Department, World Bank, industry experts, financial sources, and construction and building material companies.
In addition, data and background information were obtained from various news and trade publications, including Architectural Record, The China Business Review, China Construction News, China Daily, Engineering News-Record, People’s Daily, South China Morning Post, and World Highways. Corporate annual reports, product literature, and other company information were also used in framing the industry and market environments and as input for market size assessments.
Statistics from various sources were carefully examined during the preparation of this study, and contradictions and discrepancies among data sources were noted. The accuracy and reliability of figures from each source were evaluated, and adjustments were made where deemed necessary. This was done in order to arrive at a consistent set of industry statistics, which are based on the best available information at the time this study was published. As a result, the data presented here may differ, sometimes substantially, from figures issued by official governmental sources.
INTRODUCTION x
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
Economic Overview 5
Recent Economic Performance 6
Economic Outlook 7
Demographic Overview 10
Population 11
Urbanization 14
Households 14
Industrialization & Manufacturing Trends 16
Gross Fixed Capital Formation Trends 19
Labor Force & Employment Patterns 20
Personal Income Trends 24
Banking System & Regulations 27
Currency Exchange Rates 31
Inflation & Pricing Patterns 34
Legal & Regulatory Environment 36
Construction Technology & Quality 40
The Twelfth Five-Year Plan 42
III. OVERVIEW 45
General 45
Construction Expenditures by Type 46
Construction Expenditures by Market 48
International Environment 51
Construction Expenditures for Selected Countries 52
Foreign Participation in China’s Construction Industry 53
IV. RESIDENTIAL BUILDING 56
General 56
New Housing Construction Expenditures 60
New Housing Completions 63
Single Family 66
Multifamily 68
Additions & Alterations 70
Maintenance & Repair 72
Housing Stock 73
Single Family 76
Multifamily 78
Ownership 80
Living Space 81
Urban 84
Rural 85
V. NONRESIDENTIAL BUILDING 87
General 87
New Construction 90
Additions & Alterations 91
Maintenance & Repairs 92
Structure Types 92
Industrial 95
Office & Commercial 96
Institutional 97
Other 98
Nonresidential Building Stock 99
VI. NONBUILDING 101
General 101
New Construction 104
Maintenance & Repairs 106
Structure Types 106
Roads & Other Transportation Infrastructure 109
Utilities 111
Other 113
VII. REGIONAL TRENDS 114
General 114
Regional Demographic & Economic Trends 116
Population Patterns 117
Economic Outlook 119
Regional Construction Expenditures 121
Central-North 123
Overview 123
Construction Expenditures 125
Northeast 127
Overview 127
Construction Expenditures 129
Central-East 131
Overview 131
Construction Expenditures 133
Central-South 135
Overview 135
Construction Expenditures 137
Southwest 139
Overview 139
Construction Expenditures 141
Northwest 143
Overview 143
Construction Expenditures 145
VIII. INDUSTRY STRUCTURE 148
General 148
Industry Composition 149
Market Share 153
Marketing 156
Financial Issues & Requirements 158
Capital Expenditures 159
Project Funding 161
State 161
Private Domestic Investment 162
Foreign Investment 162
Company Profiles 163
Anhui Construction Engineering Group
Company Limited 164
Balfour Beatty plc 166
Bechtel Group Incorporated 168
Beijing Construction Engineering Group
Company Limited 170
Beijing Urban Construction Group Company Limited 172
Black & Veatch Holding Company 174
Bouygues SA 176
China Communications Construction Company Limited 178
China Gezhouba Group Company Limited 181
China Harbour Engineering, see China Communications
Construction
China National Chemical Engineering Company Limited 183
China National Machinery Industry Corporation 185
China Railway Construction Corporation Limited 186
China Railway Group Limited 189
China Road and Bridge, see China Communications
Construction
China State Construction Engineering Corporation 192
Chiyoda Corporation 194
CTCI Corporation 196
Dongfang Electric Corporation 199
E&C Engineering, see CTCI
Fluor Corporation 200
Foster Wheeler AG 202
Fujian Construction Engineering Group Company 204
Gammon Construction, see Balfour Beatty
Guangdong Construction Engineering Group Corporation
Limited 206
Guangsha Construction Group Company Limited 207
Hebei Construction Group Company Limited 208
Hip Hing Construction, see NWS Holdings
HOCHTIEF AG 210
Hunan Construction Engineering Group Corporation 211
Jacobs Engineering Group Incorporated 213
Jiangsu Suzhong Construction Group Company Limited 214
Jingding Engineering & Construction, see CTCI
Leighton Holdings, see HOCHTIEF
Lend Lease Corporation Limited 216
Metallurgical Corporation of China Limited 218
NWS Holdings Limited 221
Qingjian Group Company Limited 222
Shaanxi Construction Engineering Group Corporation 223
Shang Ding Engineering & Construction, see CTCI
Shanghai Construction Group General Company 225
Shanghai Urban Construction Group Corporation 226
Sichuan Huashi Group Corporation Limited 227
Sinohydro Group Limited 229
SINOMACH, see China National Machinery Industry
URS Corporation 231
Zhejiang Construction Investment Group
Company Limited 233
Other Companies Mentioned in the Study 235
List of Tables
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3
SECTION II -- MARKET ENVIRONMENT
1 Gross Domestic Product of China 10
2 Population of China 13
3 Households in China by Region 15
4 Manufacturing Value Added in China 18
5 Gross Fixed Capital Formation in China by Region 20
6 Employment Trends in China, 2002-2012 23
7 Per Capita Gross Domestic Product in China by Region 26
8 Interest Rates in China, 2002-2012 31
9 Chinese Currency Exchange Rates, 2002-2012 33
10 Construction Pricing Deflators in China 36
SECTION III -- OVERVIEW
1 Construction Expenditures in China by Type 47
2 Construction Expenditures in China by Market 50
3 Construction Expenditures for Selected Countries, 2002-2012 53
4 Foreign Participation in China’s Construction Industry 55
SECTION IV -- RESIDENTIAL BUILDING
1 Residential Building Construction Expenditures in China
by Type 60
2 New Housing Construction Expenditures in China 62
3 New Housing Completions in China 65
4 Residential Building Addition & Alteration Expenditures
in China 71
5 Residential Building Maintenance & Repair Expenditures
in China 73
6 Housing Stock in China by Type & Ownership 75
7 Average Living Space in China 83
SECTION V -- NONRESIDENTIAL BUILDING
1 Nonresidential Building Construction Expenditures in China
by Type 90
2 Nonresidential Building Construction Expenditures in China
by Structure 94
3 Nonresidential Building Stock in China 100
SECTION VI -- NONBUILDING
1 Nonbuilding Construction Expenditures in China by Type 104
2 Nonbuilding Construction Expenditures in China by Structure 108
3 Paved Roads in China by Region 110
SECTION VII -- REGIONAL TRENDS
1 Population of China by Region 118
2 Gross Domestic Product of China by Region 120
3 Construction Expenditures in China by Region 122
4 Central-North Region of China: Construction Expenditures 127
5 Northeast Region of China: Construction Expenditures 131
6 Central-East Region of China: Construction Expenditures 135
7 Central-South Region of China: Construction Expenditures 139
8 Southwest Region of China: Construction Expenditures 143
9 Northwest Region of China: Construction Expenditures 147
SECTION VIII -- INDUSTRY STRUCTURE
1 Revenue Data: Selected Construction Companies, 2012 152
List of Charts
SECTION II -- MARKET ENVIRONMENT
1 Population of China by Age, 2002-2022 13
2 Households in China by Region, 2002-2022 16
3 Employment Trends in China, 2002-2012 24
4 Per Capita Gross Domestic Product in China by Region, 2012 27
5 Interest Rates in China, 2002-2012 34
SECTION III -- OVERVIEW
1 Construction Expenditures in China by Type, 2012 48
2 Construction Expenditures in China by Market, 2002-2022 51
SECTION IV -- RESIDENTIAL BUILDING
1 New Housing Construction Expenditures in China, 2002-2022 63
2 New Housing Completions in China, 2002-2022 66
3 Housing Stock in China by Type, 2002-2022 76
4 Average Living Space in China, 2002-2022 84
SECTION V -- NONRESIDENTIAL BUILDING
1 Nonresidential Building Construction Expenditures in China
by Structure, 2012 94
SECTION VI -- NONBUILDING
1 Nonbuilding Construction Expenditures in China
by Structure, 2012 108
2 Total & Paved Roads in China, 2002-2022 111
SECTION VII -- REGIONAL TRENDS
1 Gross Domestic Product of China by Region, 2012 120
2 Construction Expenditures in China by Region, 2012 123
3 Central-North Region of China 125
4 Northeast Region of China 129
5 Central-East Region of China 133
6 Central-South Region of China 137
7 Southwest Region of China 141
8 Northwest Region of China 145
SECTION VIII -- INDUSTRY STRUCTURE
1 Construction Market Share in China by Company, 2012 153
Read the full report:
Construction Outlook in China Market
For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]
Tel: +44 208 816 85 48
Website: http://www.reportbuyer.com
Sarah Smith, Research Advisor at Reportbuyer.com, +44 208 816 85 48, [email protected]
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