According to research by Timetric’s Construction Intelligence Centre (CIC), the Swiss construction industry is set to expand with a five-year outlook that is improving compared to its review-period performance. Real average annual growth is set to accelerate from 2.0% during the review period (2010-2014) to 2.9% over the forecast period (2015-2019), to reach a value of US$79.4 billion by 2019 in real terms.
The industry’s output value grew at a CAGR of 8.3% during the review period, from US$63.6 billion in 2010 to US$68.9 billion in 2014. This expansion was mainly due to improved economic conditions, a low unemployment rate and an increase in exports. Over the next five years, the industry is expected to be supported by public and private sector investment in the manufacturing industry and infrastructure modernisation. Moreover, investments in office, leisure and hospitality buildings will also support this growth.
Residential construction was the largest market in the Swiss construction industry during the last five years, accounting for around 34.0% of the industry’s total value in 2014. Timetric expects the market to follow a similar trend over the forecast period, and to remain the largest in the construction industry, driven by population growth, an increase in the number of net immigrants, and a low unemployment rate. Rising urbanisation rate, low interest rates and positive regional economic conditions will also provide support for the market.
Commercial construction was the second-largest market in the industry during the review period, and accounted for 19.6% of the industry’s total value in 2014. The market growth was fuelled by increased investment in the office, leisure and hospitality buildings categories. Over the forecast period, Switzerland’s commercial construction will be supported by the rising tourist arrivals and the extension of the 3.8% value-added tax (VAT) rate for the hotel industry until 2017.
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcement.com/europe-cis/13112015/positive-forecast-swiss-construction-industry-984/