Norway’s construction industry will carry on growing over the next five years according to a recent report by Timetric’s Construction Intelligence Center (CIC).
Investment in transport infrastructure is projected as the main drive in this expansion. An investment of approximately US$86.5 billion in series of infrastructure projects will commence under the government’s fourth National Transport Plan (NTP) 2014 –2023,
The Norwegian Ministry of Transport and Communications has put forward a total investment of approximately US$53 billion in the country’s road infrastructure. This includes the development of the national road network and funding to municipal authorities. It will open 1280 km of new trunk roads and 380 km of four-lane motorway.
Residential construction is considered the largest market in the Norwegian construction industry. It represented 45% of the industry’s total value in 2014. Danny Richards, Economist at Timetric’s CIC, stated: “Over the next five years, the residential market will be supported by the country’s growing population, urbanisation and low unemployment. Projections from the UN Department of Economic and Social Affairs show that as a percentage of the total population, the country’s urban population is expected to increase from 79.1% in 2010 to 83.9% in 2030. Moreover, the country’s population is expected to increase by 19.4%, between 2010 and 2030, thus creating demand for new residential buildings.”
While the construction industry’s output value saw an increase at an annual average rate of over 7% during 2010 – 2014, Timetric’s CIC report indicated that there will be a decline to 3.9% a year on average in 2015 – 2019. Rising labour and construction costs are considered to be risks that will limit the industry as well as a decrease in spending on oil infrastructure and a weak economic growth outlook.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcement.com/europe-cis/07082015/transport-paving-the-way-for-the-norwegian-construction-industry-284/