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BUSINESS NEWS: Demand revival for materials in the second half of the year

The global construction market recorded an average reduction of about 5% in the first three months of this year compared to the corresponding period in 2012, according to a rate calculated on the basis of the financial results reported by major corporations active in the field. However, for the entire year the estimates are slightly more optimistic. The expected growth of the turnover is of 5%. The first quarter weak results were due mainly to unfavorable climatic conditions in Europe, and a pretty slow start of the construction work in North America. A slight recovery in demand is expected by the managers of construction companies from the second quarter of this year and the forecast is based on the increasing number of orders for materials and works in emerging markets. The optimal results that will be achieved in these markets (particularly in Asia-Pacific) will still be overshadowed by the decrease in demand from the developed countries. In what concerns the activity of the great entrepreneurs, the major contracts from the field will further be funded by the government at the level of various states, whilst a slight increase will be recorded in the sector of road infrastructure (highways, railways, airports) and that of civil engineering works (especially the expansion of water supply networks / sewage and building / upgrade of water treatment plants). The German construction company Hochtief Group - part of the international holding Grupo ACS - released the financial report on the first quarter of this year. According to the data provided, the value of new contracts has experienced over this period a severe decline of 27.8% down to 5.54 billion EUR compared to the first three months of 2012, when the company recorded 7.68 billion EUR. The decrease was due, especially, to the company's divisions in Asia, North and South America, which have not reported the same level of orders for projects in gas and mining sectors. Despite this downward trend, the subsidiaries in Europe have reported a significant increase of the value of contracts, up with 18.5% to 901 million EUR, compared to 760.8 million EUR, the amount recorded in the first quarter of 2012. For further information and a detailed analysis of the current Agenda Constructiilor issue click here!
 
 

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