Global Construction Industry Databook 2023-2024: Labor Shortages, Rising Interest Rates and Material Costs to Hinder Growth Over the Coming Quarters
Dublin, April 18, 2024 (GLOBE NEWSWIRE) -- The "Global Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2023 Update" report has been added to * ResearchAndMarkets.com's* offering.
The global construction market is projected to remain impacted due to labor shortages and rising interest and material costs over the next few quarters. The current macroeconomic environment has resulted in the downfall of several builders over the last 12 months, especially in markets like Australia and Germany. In these countries, the publisher expects the trend to further continue in H2 2023 and Q1 2024.
In other regions, like the Middle East and India, the construction market is poised for accelerated growth over the next three to four years. Increased spending from the public and private sectors will keep aiding the broader market growth. In India, the government has emphasized the importance of improved infrastructure to drive economic growth, and therefore, is expected to increase spending significantly in fiscal year 2024-25. The construction industry is also projected to show steady growth in the United States, wherein the CHIPS and Inflation Reduction Act is expected to lead to higher spending in the sector.
*Australia, Germany, and the United Kingdom are anticipated to experience increased challenges due to macroeconomic factors*
Insolvency rates have surged to record-high levels in the Australian market in 2023. Cost blowouts and labor shortages are among the several factors that have led to the downfall of many renowned builders in Australia in H1 2023 and the trend has further continued in H2 2023.
· Residence Building Group, in October 2023, joined the growing list of construction firms that entered liquidation in South Australia. The firm cited fixed price contracts as the reason behind debts of more than A$1 million.
· Millbrook Homes, in New South Wales, also entered into liquidation owing over A$4 million to nearly 80 creditors. Bentley Homes, the Victorian residential builder, also appointed liquidators four days after the insolvency proceedings announced by Millbrook Homes.
Similar trends have been emerging in the German market as well. Builders, in Germany, have been facing the perfect storm in rising interest rates, expensive construction materials, slowing demand, and a shortage of skilled workers The financing issues have subsequently resulted in the downfall of several developers including Centrum Group and Development Partner and Project Immobilien Gruppe. Soaring material prices have also resulted in a higher number of project cancelations in 2023.
The high-interest rate environment has also put many housebuilding projects on hold in the United Kingdom market. With interest rates projected to remain higher for longer, the publisher expects further pressure on the construction market in these nations from the short to medium-term perspective.
*Construction market growth in India and Middle East will support the global industry in H2 2023 and Q1 2024*
Despite the macroeconomic headwinds faced by the global construction market, the Middle Eastern region has shown strong resilience in H1 2023 and the publisher expects the trend to continue in H2 2023 and beyond. Notably, the rising investment in non-energy infrastructure projects is also expected to accelerate the growth of the construction market, especially in the United Arab Emirates. The growing appetite for luxury residential properties is also expected to lead to higher project launches in the residential segment from the short to medium-term perspective.
In India, investment across various infrastructure projects has been rising consistently over the last few years. The current government, led by Narendra Modi, has emphasized the importance of infrastructure to drive economic growth. Under the Pradhan Mantri Gati Shakti scheme, more than 100 big-ticket infrastructure projects are being examined. The uptake in housing projects and private investment in the commercial construction market will also aid the growth of the construction industry in India over the next three to four years.
*Global steel prices are likely to decline on the back of weak offtake in the Chinese construction market*
Excessive supply and weaker consumption from the Chinese market mean that global steel prices will remain under pressure from the short-term perspective. This is also revealed in Goldman Sachs' report, which revealed that the slower recovery in the Chinese property market means that there will be a 5% drop in the steel demand, and as a result, Beijing might lower its production target. In the Asian market, India is expected to remain a bright spot when it comes to the steel demand in H2 2023 and Q1 2024. The higher spending on infrastructure projects, coupled with robust housing demand, will drive steel consumption in the Indian market.
This report provides data and trend analyses on Global construction industry, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 1,500+ charts and 1,200+ tables. It details market size & forecast, top cities construction data, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.
It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.
*This title is a bundled offering, comprising 15 country reports.*
· United Arab Emirates Construction Industry Databook
· Qatar Construction Industry Databook
· China Construction Industry Databook
· India Construction Industry Databook
· Australia Construction Industry Databook
· South Korea Construction Industry Databook
· Indonesia Construction Industry Databook
· Philippines Construction Industry Databook
· Bangladesh Construction Industry Databook
· Vietnam Construction Industry Databook
· Sri Lanka Construction Industry Databook
· United Kingdom Construction Industry Databook
· Brazil Construction Industry Databook
· Russia Construction Industry Databook
· United States Construction Industry Databook
*Each country report covers the following modules:*
· Market Dynamics by Value, Volume, and No. of Units: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the building and infrastructure construction industry.
· Residential Construction Outlook: Provides market analysis by type of construction, development stage, price point, and key cities. KPIs include value, volume and number of units.
· Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
· Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, chemical & pharmaceutical buildings.
· Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants, educational buildings.
· Infrastructure Construction Outlook: Provides growth dynamics and market analysis by three key sections such as marine and inland, utility system and transport infrastructure construction.
· City Level Analysis: Provides outlook of top 10 cities by construction value for each country.
For more information about this report visit https://www.researchandmarkets.com/r/s5h6r
*About ResearchAndMarkets.com*
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
CONTACT:
CONTACT: ResearchAndMarkets.com
Laura Wood,Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./ CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900