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Industry Review
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Industry Review
Due to the fact that PALFINGER has a diversified product portfolio, the Company’s products are used
in a variety of industries. In addition to the construction industry, transport and haulage industries,
railway infrastructure, timber and agriculture as well as the recycling industry, both wind energy and
marine systems have also been relevant customer industries for PALFINGER since 2010.
Construction industry
Although the situation improved slightly in the European construction industry in early 2011, an
economic downturn was observed as the year went on. In most European countries, forecasts for
the construction industry had to be revised downwards in the second half of 2011, as the debt crisis
quickly affected the entire industry. Portugal, Spain, Great Britain and Ireland were hit particularly
hard. The Eastern European countries also failed to live up to expectations as growth markets. The
only exception was Poland, which displayed dynamic development until the end of the reporting
period. Construction activities also rose slightly in Russia, boosted by large-scale projects particularly
in connection with the preparations for the Winter Olympic Games 2014 in Sochi and the World
Football Championships 2018.
Economic development is reflected
in the construction industry.
According to Euroconstruct, a heavy slump in the building industry in Europe was prevented primarily
by the anti-recession measures taken by the public sector in civil engineering and in the redevelopment
sector. Based on the economic outlook for the 2012 financial year, activity in the European
construction industry is expected to slow down even further. From 2013 onwards, more and more
stimuli are expected to come from the construction of new buildings so that, for the first time after
having posted negative figures for five consecutive years, sustainable recovery should be feasible.
According to the National Association of Home Builders (NAHB), the housing market in the USA
stabilized in 2010 and recorded a plus for the first time after four years marked by declines. For the
year 2011 as a whole, an increase of approx. 1 per cent to a total of 592,000 started construction
projects is forecast. In 2012, recovery of the US housing market is predicted to accelerate further to
approx. +15 per cent and in 2013 a figure of more than 900,000 housing units should be attained.
As promising as these increases may sound, not even half of the level achieved in 2005 will be
reached in 2013 if the assumed targets are met.
In South America, an upward trend is expected, primarily in Brazil, due to investments in
infrastructure for the World Football Championships 2014 and the Summer Olympic Games 2016.
Asia remains the leader in the field of housing, structural engineering and civil engineering. Solid
growth is to be expected, first and foremost in China and India; the Chinese five-year plan provides
for the construction of approx. 32 million new private residences by 2015. Nevertheless, even these
markets will not be spared the effects of the macro-economic developments in the global market.
According to Datamonitor’s assessment, the structural engineering and civil engineering sectors in
Asia are going to show an average growth rate of approx. 7 per cent in the next years.
In the developed markets, ecological and social aspects have been increasingly taken into consideration
in the design of new buildings and sustainability certifications have gained acceptance,
primarily for top-quality buildings. For the time being, however, such certifications are associated
exclusively with the quality of finished buildings but not with the construction process itself. This
means that construction companies are not yet required to comply with stricter regulations in
connection with energy efficiency, noise prevention and safety.
46 palfinger Annual Report 2011