Construction in the Netherlands - Key Trends and Opportunities to 2018 is a new market research publication announced by Reportstack. The Dutch construction industry recorded a compound annual growth rate (CAGR) of -4.10% during the review period (2009-2013). The country's economic growth was severely affected by the European financial crisis, resulting in the accumulation of national debt which contributed to 75% of GDP in 2013. In a bid to reduce the debt, the government implemented various austerity measures such as a reduction in public spending. The construction industry's growth rate is expected to recover over the forecast period, as a result of economic recovery and government efforts to retain the country's attractiveness as a business center. The industry's output is expected to increase at a CAGR of 2.02% over the forecast period (2014-2018).
This report provides a comprehensive analysis of the construction industry in the Netherlands. It provides:
- Historical (2009â€“2013) and forecast (2014â€“2018) valuations of the construction industry in the Netherlands 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 the Netherlands
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- 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
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
- The Dutch construction industry struggled following the financial crisis in 2008. In 2013, the construction production index, a measure of general construction output, contracted by 4.6%, following a decline of 8.0% in 2012. New building permit approvals also fell following the crisis, declining to its lowest level in nearly two decades in the fourth quarter of 2013. With permits providing an indicator of activity in the coming quarters, the recent slump during 2012 and 2013 does not bode well for output growth in the early part of the forecast period of 2014.
- According to CBS, investments by food, drinks and tobacco manufacturers are anticipated to increase by 8.0% in 2014. Dairy product manufacturers in particular plan to invest EUR700.0 million (US$915.0 million) in increasing their processing capacity by 2015. Seven new dairy processing facilities and a number of expansion projects are expected to be complete over the forecast period. According to the Dutch Dairy Association, the increase in investment is due to the growing international demand for products and the planned abolishment of milk quotas in 2015. Increased investment will support the growth of the manufacturing plants category over the forecast period.
- The Netherlands has been successful in attracting foreign tourists, due in part to its hosting of numerous cultural and special events such as King's Day and the International Theatre School Festival. Growth in tourist arrivals supported activity in the construction of tourism infrastructure, particularly hotels. Various hotel projects are scheduled to be completed over the next two years, including two in Amsterdam: the Hyatt Regency hotel, which is scheduled to open in 2015, and Park Inn Hotel by Radisson, expected to open in the fourth quarter of 2014. Growth in the commercial construction market will be driven by the performance of the leisure and hospitality buildings category.
- The presence of the world's largest internet junction and 11 submarine cables provide strong broadband connectivity and make the Netherlands an emerging data center country. Several technology companies are therefore planning to invest in its infrastructure. Microsoft plans to invest EUR2.0 billion (US$2.7 billion) to establish a data center in North Holland, and UK-based BT Group plans to expand the capacity of its data center in the Benelux region, and construct a new facility in Rotterdam. These developments will require an increase in investment in communication infrastructure.
- According to the Association of the Dutch Chemical Industry (VNCI), the country's chemical industry declined in 2013 due to the rising success of the Chinese chemical industry and the growth of specialty chemicals in the Middle East. During the first three quarters of 2013, the chemical industry's turnover declined by 6.0% and production declined by 5.5%. In order to retain the industry's competitiveness, the government is reducing regulatory burdens and reinforcing chemical clusters. This move is likely to support the chemical plants category over the forecast period.
Royal Volker Wessels Stevin NV Chicago Bridge & Iron Company NV Koninklijke Boskalis Westminster NV Royal BAM Group nv Heijmans NV
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