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CORPORATIONS: Favorable conditions for business growth this year

For this year, the managers of the most significant companies active in the global construction domain estimated a positive trend compared to 2013, mainly due to the 2.8% growth forecast of the world economy. Very good results are expected, unlike the previous year, in North America, where the specialized forecasting associations indicate an increase of up to 3% of GDP. Optimal sales are expected to take place in Europe as well, especially in the Eastern part of the continent, but also in the Middle East. However, the increases will not be spectacular and the managers rely rather on a more favorable climate for doing business than the one registered in 2013. Last year, the sales reported by major construction groups in the world showed fluctuations between 2% and 5%. Better results were recorded by the producers of materials for finishing and HVAC equipment, while, at the opposite part, stood the segments of duct steel and metal roofing, the main cause for the latter being the decreases in prices for steel products. In what concerns the market for machinery and equipment, this has registered a downward trend over the last six years in Europe, following the decrease of the number of new projects and construction investments. If the states from the Southern Europe recorded steep declines (in Italy, for example, the number of sold machines reached an absolute minimum), in the Central and Eastern Europe there has been a relatively favorable situation, the states registering either slight increases or a stabilization at a relatively optimal level. The estimates indicate that the global economy will register a higher growth dynamic than the one recorded last year, despite major difficulties especially in what concerns funding. Overall, the main coordinates for the current global economic developments indicate a 2.8% increase and an average price of Brent oil of 110 USD per barrel (compared to 109 USD / barrel in 2013), which creates favorable conditions for the development of the activity during this year. However, a quick recovery and a strong market are not estimated, but it is expected that the gradual improvement in the economy in the coming years will create an environment conducive to the construction of new buildings and the continuation of renovating the existing ones.
 
 

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