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    Demand For Asia'S Construction Industry Is Growing Rapidly.

    2011/1/8 17:38:00 82

    Asian Construction Industry

    KPMG's recent survey of 140 construction companies worldwide shows that many major infrastructure projects in the Asia Pacific region continue to drive the development of these companies and reverse the downtrend in other regions.


      

    kpmg

    In 2010, the global construction industry survey interviewed 140 executives from large construction companies from 25 countries around the world to collect their views on the industry's future and issued a report entitled "adaptation to the uncertain environment".

    46% of the respondents were from Europe, Middle East and Africa, 30% of them came from the Asia Pacific region, while 24% of them came from American businesses.


    Although the pace of global economic recovery is generally slow, the outlook for the construction industry is still strong.

    Nearly half of the respondents from all over the world are expected to increase contracts for the next year as demand increases, businesses expand new services such as energy, such as energy, or markets in other regions, such as the Middle East, Asia, Australia, Africa and India.

    Respondents in the Asia Pacific region are most optimistic about the outlook. 21% of respondents are confident that the volume of contracts in 2011 will increase significantly.


    More than 1/3 of respondents from the Asia Pacific region pointed out the various incentives launched by the government.

    Economic plan

    It has brought about a "significant" impact.

    However, most respondents from Europe, the Americas, the Middle East and Africa believe that these measures have little or no effect.


    KPMG China partners Jonathan Downer pointed out: "Asia Pacific construction companies are benefiting from infrastructure and resource related activities, and the medium-term outlook is positive.

    The challenge facing the executives of the construction industry in Hong Kong is how the company can get a share from the booming construction market in mainland China and how it can diversify its business outside the purely contracted areas so as to enhance profits and establish long-term sustainable development businesses.


    Another trend found in the survey is that many contractors are considering developing new markets or areas to enhance profitability.


    Although the average profits of the Asia Pacific companies are higher than those of other places, only a few Asian Pacific companies have successfully avoided taking the price reduction measures.

    Nearly half of Asia Pacific respondents pointed out that they need to pay at break even or even lower levels.

    Some enterprises choose to reduce the scale of business rather than participate in price reduction.


    Although the government is tightening its spending in an all-round way,

    Medium-sized

    The company remains optimistic about the outlook for the coming year.

    However, the industry has made a more prudent forecast of the profits in the next 12 months.

    Competition in all markets is still very intense, and nearly 1/3 (31%) of the surveyed construction companies pointed out that even if the Asia Pacific market is more vigorous, the new business they are competing for now can bring in less profits.

    One of the respondents described Hongkong's pricing as "extreme".


    The number of employees also reflects the strong market atmosphere in the Asia Pacific region: only one company in every seven companies in the region has cut jobs.

    On the contrary, 35% of respondents indicated that their company had recruited manpower.


    As far as the future is concerned, the survey points out that global major infrastructure projects are gradually shifting from railways, roads and bridges to projects like electricity, energy, mining and water conservancy. This trend is especially evident in large enterprises.

    The only exception is the Asia Pacific region, where railway construction projects are being vigorously promoted, such as the active development of multiple high-speed rail projects in the mainland of China and the development of Railways in Hongkong.

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