BAM Abbreviated Annual Report 2011 - Siteseeing in the world of ...

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2011
Construction industry barometer
The construction industry barometer is based on
Euroconstruct’s Country Report as published in
November 2011. Given today’s rapidly changing markets,
forecasts from that Country Report may have been
adjusted in the meantime.
According to Euroconstruct, the year under review saw
growth in the gross domestic product in the Group’s five
home markets (the Netherlands, Belgium, United
Kingdom, Ireland and Germany) of between 1.0 percent
(United Kingdom) and 3.0 percent (Germany) with an
average of 1.8 percent. The average growth was in line
with the forecast in the previous Annual Report, but the
range in 2011 was wider than expected.
A lower average growth is forecast for the Group’s five
home markets in 2012: the 2012 forecast is based on an
average growth of 1.3 percent with figures across the
different countries ranging from 1.0 percent to 1.7
percent. Increasing average growth is assumed for
subsequent years.
The Netherlands
The building industry experienced a difficult time in 2011
because of the low level of work. Nevertheless, according
to Euroconstruct (November 2011), building output
increased by 3.7 percent. The Dutch economy grew by
1.5 percent in 2011. The growth in the building industry
was reflected in all segments, but it was largely the result
of a slight recovery in residential and non-residential
construction which were sectors where output had fallen
sharply in previous years.
According to Euroconstruct (November 2011), the output
of new homes increased by 6.0 percent in 2011 (2010: a
fall of 16 percent). Euroconstruct is forecasting further
growth from the current low level of output in the years
ahead. Including this forecast growth, output for the next
few years is still well below the capacity demonstrated in
the years before the economic crisis.
According to Euroconstruct, the proportion of new build
in non-residential output increased by 2.7 percent in the
year under review, which was due especially to growth in
the healthcare, education and agriculture sectors. Many
of the other segments saw output fall by between 15 and
30 percent, mainly because of the low level of spending in
the private sector, which is not expected to improve in
the next few years. Euroconstruct is forecasting a
1.9 percent drop in the output of new non-residential
projects in 2012. However, there will again be significant
differences between the various segments: 2012 is
predicted to see a further drop of almost 20 percent in
the office segment, but on the other hand an increase of
almost 7 percent in industry.
Output increased by approximately 2.4 percent in the
Dutch civil engineering market in 2011. Central
government investment remains at a relatively high level,
but local government spending is under considerable
pressure. Euroconstruct is predicting that this next year
will see a drop in output of almost 2 percent, followed by
growth in 2013 and 2014.
Belgium
Building output increased in Belgium by almost 4.0
percent in 2011 according to Euroconstruct. Most of the
increase was in the civil engineering market, but the
other sectors also contributed. A more limited growth in
output is forecast in the construction and civil
engineering markets over the next few years.
The Belgian non-residential market grew by more than
1 percent in 2011, most of the growth coming from
renovation. Strong growth of between 2.3 and 3.4
percent is forecast in non-residential new build for 2011.
Output increased by more than 10 percent on the Belgian
civil engineering market, mainly due to increased
spending on road building projects. The outlook for 2012
is positive. Euroconstruct is predicting growth of
approximately 8 percent in 2012, followed by a
contracting market, due in particular to less investment
in road building.
United Kingdom
Building output in the United Kingdom fell by 2.0 percent
in the year under review, mainly due to the drop in output
on the non-residential market. The growth in output on
the civil engineering market was not enough to
compensate.
According to Euroconstruct, non-residential output
decreased by 6.4 percent in the UK during the financial
year, mainly because of the reduced output in health care,
education and commercial property. The British
government’s spending cuts will also impact the health
care and education sectors for the next few years, which
is one of the reasons why Euroconstruct is predicting that
the UK non-residential construction sector will contract