international
construction
march 2015
REGIONALREPORT
22
Growth despite challenges
development of transport infrastructure.
Last
November,
the
European
Commission President Jean-Claude
Juncker launched the European Fund for
Strategic Investment (EFSI) supportedby
the European Investment Bank (EIB).
The president said the € 315 billion
(US$ 359 billion) investment had been
designed “to get Europe growing again
and get more people back to work”
throughsupportingkeyschemes inenergy,
transport, research and innovation. He
added, “If Europe invests more, it will be
more prosperous and create more jobs –
it’s as simple as that.”
With the drivers and rates of growth
continuing to differ across Europe, both Euroconstruct and
Timetric’s analysis has shown that in general, the Northern
countries have remained financially stronger than those in the
South.
The buoyant UK is the third largest market in Europe, with
Timetric's figures construction output to be worth € 177 billion
(US$201billion) per year, with a +5.2% increase last year.
Much of its improvement has been around a revived housing
market, which has been particularly strong in London. The
capital’s property prices have increased nearly +20% in the last
>
year.This city’s commercial property sector has alsobeen strong.
Another boost for Londond's construction market is the
UK£ 15 billion (US$ 23 billion) east-west Crossrail project,
which is set for completion in 2017. Its emergence has led to
proposals for a further scheme running north-south across the
city.
Another government-backed UK project gaining momentum
is the UK£ 50 billion (US$ 77 billion) HS2 rail scheme,
promising greater connectivity between London, Birmingham
andManchester.The final decision onwhether to go aheadwith
this will not come before the UK’s May general election, but it
has the broadbacking of themainstreampolitical parties.
Meanwhile, France has seen a slowdown in its € 200 billion
(US$228billion) per year constructionmarket.
This was confirmed by European Architectural Barometer,
which is produced by Arch-Vision. Its findings from 1,600
architects surveyed across 8 countries revealed that both France
and Italywere experiencing challenges.
In France, around 50% of respondents said that they had seen
a decline in their order book last year. It predicated the market
would fall -2% this year, before stabilising in 2016.Despite this,
the study’s results forecast around+2%wider growth inEurope’s
construction sector as awhole.
Largestmarket
According to Euroconstruct, Germany’s remains the largest
construction market in Europe, with a value of € 285 billion
(US$324billion).Growthwas put at +2.3% last year.
Underlining present growth trends, the Construction
Equipment & Building Material Machinery Association of the
GermanEngineering Federation (VDMA), has said revenues for
construction equipmentmanufacturers rose +8% last year.
A key upcoming project is the Fehmarnbelt Fixed Link, which
will connectRødbyhavn inDenmark toPuttgarden inGermany.
According to Pat Cox, the EUCommission’s representative and
coordinator of theTEN-T (Trans-EuropeanTransportNetwork)
Scandinavian-Mediterranean Corridor, the project will prove of
wider significance for Europe.
The € 6.2 billion (US$ 7.1 billion) scheme is a key part of the
European transport network which runs from Finland through
Sweden, Denmark, Germany, Austria and Italy toMalta. Once
complete, the linkwill be theworld’s longest immersed tunnel.
Elsewhere in Scandinavia, there were encouraging signs in
Sweden. InStockholm, theUS$2.2billionStockholmCityLine
double track commuter railway line beneath the city’s central
district is said tobeprogressingwell. It also includes an immersed
tunnelat thebayofRiddarfjarden,knownasSöderströmstunneln.
The tunnel at Riddarfjarden, Stockholm,
is among Sweden’s biggest projects
Warsaw’s Spire
tower will be
the city’s tallest
buildingwhen
complete
