Across the world, an ever constant is the construction industry. The population is growing at a rate like the world has never experienced before. In the last century, the increase in the human population was three times greater than it had been in the entire recorded history of mankind, growing from just more than one billion to a now whopping seven billion. With more people comes more required space to cope with their needs, but which countries are deemed the major players in world construction and which have lost their feet in the past few years?
A brief look at the past
America has always ranked highly in the construction industry and its relationship with the market has seen our transatlantic colonial cousins establish themselves as the most dominant figure in the business. In 2009, the United States boasted a construction market value of $1,313 billion, miles ahead of second placed China’s, $1,035 billion. A year later and the Asian superpower had taken a commanding lead, owning 15% of the market share in compared to the United States’ 14%.
This was hardly surprising, considering economists have suggested the Brazil, Russian, India and China (BRIC) countries will become the dominant suppliers of manufactured goods and services in the next 30 years.
The big surprise
Throughout the world of construction, many were surprised when China leap-frogged the United States back in 2010; however, many critics suggest the rejig was nothing shy of inevitable. A Financial Times report insinuates that by next year, China will account for a fifth of the world’s building industry. The United States, on the other hand, saw a major reduction post-recession, which was reflected in more than a third of its investment being withdrawn.
China’s time at the top
As previously mentioned, China’s growth market share is to set increase until at least the end of next year; however; this is not the case for its overall construction growth, which is expected to rapidly slow down. On the other hand, the United States, is set to start making a considerable mark-up in terms of its overall construction growth closing in on China over the next 15 years. The United States’ return to form is expected to come in line with rejuvenation of its older and somewhat forgotten cities, which haven’t seen investment for the past number of years.
Despite America’s plans to make headway on China, the “one belt one road” initiative by the Chinese is set to take the world by storm. Aiming for global economic domination, the plans have been described as a 21st century silk road, creating trade links throughout the world.
Indian growth
Although China’s ability to dominate has become apparent over the last number of years, its rate of growth has been masked by that of fellow BRIC: India. An emerging contender amongst the world’s greatest, its global share sky rocketed in the short time between 2009 and 2010, moving from ninth to fourth. Its colossal rate of growth in between this time was almost double that of China’s.
By 2020, India is expected to have taken a further 2% of the global share it possessed from the decade before. This sheer increase in construction is effectively compounded by its exponential population growth. One report has suggested that to match its growing housing demands, India would need to build 31,000 homes every day for the next 14 years.
The United kingdom
Once again, Brexit is the over-arching factor that is causing issues for the United Kingdom. It is predicted that by next year, the United Kingdom will drop out of the top 10 in terms of global share. The uncertainty over Brexit has caused a lack of investment and a series of particularly harsh weather periods owed to a decrease in production during 2018. The beast from the east didn’t just manage to make the spring of 2018 miserable, it also helped to boost eastern countries’ grip on the construction market.
Despite the lack of current positives, all is not bleak for Britain. Plans are in place for major new construction projects to get underway by 2030 to cater to the ever-present housing crisis. Accommodation will be the main focus of the plans, but a vast range of developments to airports and rail-lines are also included in the blueprint.
By 2030, it is predicted that the construction industry will equate to almost 15% of global economic output, to which the UK will be one of the major players.
Spain
Just like so many others, the Spanish really felt the pinch when the financial crash struck. Although its market share between 2009 and 2010 fell by around 1%, it slipped more three places in terms of its position from fifth to eighth.
Indonesia: Out of Nowhere
When looking at the statistics from 2009 and 2010, Indonesia is nowhere to be seen. However, conditions in the country have massively improved as of late and predictions suggest the country will take sixth place in the global market share by next year. Interest rates in the country recently dropped significantly and this has resulted in a property boom.
Some of the largest projects currently in progress throughout the world include the following.
- Dubailand in Dubai: a complex of 278 square kilometers, containing theme parks, hotels and more.
- South-North Water Transfer Project in China: provides the population living in northern China access a greater water supply. The project has a whopping 48-year schedule.
- London Crossrail Project in the United Kingdom: the world’s first underground train system, set to connect 40 stations.
