This report provides detailed market analysis, information and insights into
the
French construction industry including:
The French construction industry's growth prospects by market, project type and type of construction activity
Analysis of equipment, material and service costs across each project type within France
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the French construction industry
Analyzing the profiles of the leading operators in the French construction industry
Data highlights of the largest construction projects in France
Executive summary
The French construction industry registered a low growth of 1.5% in 2009 and declined by 4.2% in 2010, following the eurozone crisis. The countrys export-oriented manufacturing sectors reduced investment, alongside a decline in employment and low wage growth, led to a steady decline in domestic economic activity and demand for new construction projects. Supply has been hampered as developers are wary of the economic situation and have postponed new projects until conditions improve. Consequently, the industry again recorded a decline of 2.8% in 2013. Due to a recovery in business confidence, the industry is anticipated to regain momentum over the forecast period (2
0142018), with growth
expected at a moderate CAGR of 1.47%.
Scope
This report provides a comprehensive analysis of the construction industry in France. It provides:
Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in France using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Detailed profiles of the leading construction companies in France
Key highlights
The French construction industry recorded a slowdown in 2013, after recovering from the financial crisis. During 20092013, the gross value-added growth in construction peaked at an annual rate of 4.5% (in real terms) in 2011, but activity slowed in the following two years, and posted a contraction of -2.1% in 2013. In the fourth quarter of 2013, production and investment in the construction industry began to show signs of recovery, and registered a 0.5% growth in output, compared with the fourth quarter of 2012.
According to the Cost of Construction Index, construction costs have continued to increase since 2009 despite a weak growth in activity. There was, however, a slight decline towards the end of 2013. According to the National Institute for Statistical and Economic Studies (INSEE), the CCI declined by 1.74% on a quarter-on-quarter basis in the third quarter of 2013. The Labor Cost Index (LCI) increased from 0.5% in the second quarter to 0.8% in the third quarter of 2013 of the same year.
Frances construction industry is undergoing a period of weakness. During the first nine months of 2013, the total building permits index in the country declined by 12.2%, compared with the same period in 2012. The building permits index for residential units declined by 22.4% in the first nine months of 2013, whereas the building permits for non-residential units declined by 1.8% during the same period. The World Banks Doing Business 2014 report ranked France 92nd out of 189 global economies in terms of dealing with construction permits, an 18-point decline from its 2013 rank. The economy is experiencing downfall due to economic troubles in the eurozone, and this will result in a similar trend in construction activity in the early part of the forecast period.
As a part of the Europe 2020 strategy, the French government proposed the EUR35.0 billion (US$46.1 billion) state-funded National Investment Program in 2010. The basic principle of the national strategy is to incorporate the act with higher education and research. EUR19.0 billion (US$25.0 billion) has been allocated for projects in higher education and research, while the remaining EUR16.0 billion (US$21.1 billion) has been allocated for maintaining industrial competitiveness. It includes a total of 993 projects such as the establishment of research and higher education hubs, the development of world-class multi-disciplinary centers of excellence, research laboratories and technological research institutes.
In 2013, Agence Francaise & Development (AFD) approved loans amounting to EUR129.0 million (US$171.0 million) for healthcare projects in France. The projects approved include the Franck Joly de Saint-Laurent-du-Maroni Hospital in the west of French Guiana, the Runion University Hospital, the Romain Blondet de Saint-Joseph Hospital in Martinique, the Raizet Geriatric Hospital and the Capesterre-Belle-Eau Hospitals project for an accommodation facility for dependent elderly people (EHPAD) in Guadeloupe. AFD works for both the health sector and the medical-social sector, and helps in improving healthcare services, making provisions for medical-social, especially with regard to care for aging population.
In 2012, the French Ministry of Culture and Communication made an allocation of EUR7.4 billion (US$9.5 billion) for the enhancement and development of culture and communication in the country. Of the total amount, EUR3.6 billion (US$4.6 billion) is allocated for the development of cultural fields such as museums, heritage and archaeology. This will largely support the growth of the French construction industry over the forecast period.
The French construction industry's growth prospects by market, project type and type of construction activity
Analysis of equipment, material and service costs across each project type within France
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the French construction industry
Analyzing the profiles of the leading operators in the French construction industry
Data highlights of the largest construction projects in France
Executive summary
The French construction industry registered a low growth of 1.5% in 2009 and declined by 4.2% in 2010, following the eurozone crisis. The countrys export-oriented manufacturing sectors reduced investment, alongside a decline in employment and low wage growth, led to a steady decline in domestic economic activity and demand for new construction projects. Supply has been hampered as developers are wary of the economic situation and have postponed new projects until conditions improve. Consequently, the industry again recorded a decline of 2.8% in 2013. Due to a recovery in business confidence, the industry is anticipated to regain momentum over the forecast period (2
Scope
This report provides a comprehensive analysis of the construction industry in France. It provides:
Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in France using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Detailed profiles of the leading construction companies in France
Key highlights
The French construction industry recorded a slowdown in 2013, after recovering from the financial crisis. During 20092013, the gross value-added growth in construction peaked at an annual rate of 4.5% (in real terms) in 2011, but activity slowed in the following two years, and posted a contraction of -2.1% in 2013. In the fourth quarter of 2013, production and investment in the construction industry began to show signs of recovery, and registered a 0.5% growth in output, compared with the fourth quarter of 2012.
According to the Cost of Construction Index, construction costs have continued to increase since 2009 despite a weak growth in activity. There was, however, a slight decline towards the end of 2013. According to the National Institute for Statistical and Economic Studies (INSEE), the CCI declined by 1.74% on a quarter-on-quarter basis in the third quarter of 2013. The Labor Cost Index (LCI) increased from 0.5% in the second quarter to 0.8% in the third quarter of 2013 of the same year.
Frances construction industry is undergoing a period of weakness. During the first nine months of 2013, the total building permits index in the country declined by 12.2%, compared with the same period in 2012. The building permits index for residential units declined by 22.4% in the first nine months of 2013, whereas the building permits for non-residential units declined by 1.8% during the same period. The World Banks Doing Business 2014 report ranked France 92nd out of 189 global economies in terms of dealing with construction permits, an 18-point decline from its 2013 rank. The economy is experiencing downfall due to economic troubles in the eurozone, and this will result in a similar trend in construction activity in the early part of the forecast period.
As a part of the Europe 2020 strategy, the French government proposed the EUR35.0 billion (US$46.1 billion) state-funded National Investment Program in 2010. The basic principle of the national strategy is to incorporate the act with higher education and research. EUR19.0 billion (US$25.0 billion) has been allocated for projects in higher education and research, while the remaining EUR16.0 billion (US$21.1 billion) has been allocated for maintaining industrial competitiveness. It includes a total of 993 projects such as the establishment of research and higher education hubs, the development of world-class multi-disciplinary centers of excellence, research laboratories and technological research institutes.
In 2013, Agence Francaise & Development (AFD) approved loans amounting to EUR129.0 million (US$171.0 million) for healthcare projects in France. The projects approved include the Franck Joly de Saint-Laurent-du-Maroni Hospital in the west of French Guiana, the Runion University Hospital, the Romain Blondet de Saint-Joseph Hospital in Martinique, the Raizet Geriatric Hospital and the Capesterre-Belle-Eau Hospitals project for an accommodation facility for dependent elderly people (EHPAD) in Guadeloupe. AFD works for both the health sector and the medical-social sector, and helps in improving healthcare services, making provisions for medical-social, especially with regard to care for aging population.
In 2012, the French Ministry of Culture and Communication made an allocation of EUR7.4 billion (US$9.5 billion) for the enhancement and development of culture and communication in the country. Of the total amount, EUR3.6 billion (US$4.6 billion) is allocated for the development of cultural fields such as museums, heritage and archaeology. This will largely support the growth of the French construction industry over the forecast period.
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