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Construction Industry in France to 2018: Market Trends, Shares and Analysis Report

The French construction industry registered a low growth of 1.5% in 2009 and declined by 4.2% in 2010, following the eurozone crisis. The country’s export-oriented manufacturing sector’s reduced investment, alongside a decline in employment and low wage growth, led to a steady decline in domestic economic activity and demand for new construction projects. Supply has been hampered as developers are wary of the economic situation and have postponed new projects until conditions improve.

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Consequently, the industry again recorded a decline of 2.8% in 2013. Due to a recovery in business confidence, the industry is anticipated to regain momentum over the forecast period (2014−2018), with growth expected at a moderate CAGR of 1.47%.

Scope:-

This report provides a comprehensive analysis of the construction industry in France. It provides:

  • Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in France using construction output and value-add methods
  • Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
  • Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
  • Analysis of key construction industry issues, including regulation, cost management, funding and pricing
  • Detailed profiles of the leading construction companies in France

Reasons to buy

  • Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts
  • Understand the latest industry and market trends
  • Formulate and validate business strategies using Timetric's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

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Key highlights

  • The French construction industry recorded a slowdown in 2013, after recovering from the financial crisis. During 2009–2013, the gross value-added growth in construction peaked at an annual rate of 4.5% (in real terms) in 2011, but activity slowed in the following two years, and posted a contraction of -2.1% in 2013. In the fourth quarter of 2013, production and investment in the construction industry began to show signs of recovery, and registered a 0.5% growth in output, compared with the fourth quarter of 2012.
  • According to the Cost of Construction Index, construction costs have continued to increase since 2009 despite a weak growth in activity. There was, however, a slight decline towards the end of 2013. According to the National Institute for Statistical and Economic Studies (INSEE), the CCI declined by 1.74% on a quarter-on-quarter basis in the third quarter of 2013. The Labor Cost Index (LCI) increased from 0.5% in the second quarter to 0.8% in the third quarter of 2013 of the same year.
  • France’s construction industry is undergoing a period of weakness. During the first nine months of 2013, the total building permits index in the country declined by 12.2%, compared with the same period in 2012. The building permits index for residential units declined by 22.4% in the first nine months of 2013, whereas the building permits for non-residential units declined by 1.8% during the same period. The World Bank’s Doing Business 2014 report ranked France 92nd out of 189 global economies in terms of dealing with construction permits, an 18-point decline from its 2013 rank. The economy is experiencing downfall due to economic troubles in the eurozone, and this will result in a similar trend in construction activity in the early part of the forecast period.....

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