BMI View : The Czech construction industry is anticipated to expand 2.9% y-o-y in 2016, the same growth rate compared to 2015. This year, the main growth drivers are expected to be t he energy and transport sectors. T he latter through the rail and roads sub-sectors, which are still enjoying EU-driven investment. The r esidential building industry will be another bright spot in 2016 as robust Czech economy and high household disposable income increase housing demand.
Latest Updates And Structural Trends
Compared to the challenging global economic environment, the economy of Czech Republic remains robust, mainly due to high private consumption and there are signs for higher private consumption growth in 2016.
In Q415, GDP in the Czech Republic increased 4.0% y-o-y, while in q-o-q basis it remained stable. The GDP growth for 2015 was 4.3%, based on data of Czech Statistical Office (2016).
In January and February 2016, overall construction decreased 10.4% and 2.3% y-o-y respectively, in real terms. Meanwhile, civil engineering grew 0.8% y-o-y in January and 3.0% y-o-y in February (Czech Statistical Office, 2016).
|e/f = BMI estimate/forecast. Source: Czech Statistical Office, BMI|
|Construction industry value, CZKbn||226.98||238.11||252.15||268.42||285.30||304.90||323.78|
|Construction Industry Value, Real Growth, % y-o-y||2.91||2.90||3.10||3.55||3.29||3.87||3.19|
|Construction Industry Value, % of GDP||5.1||5.1||5.1||5.1||5.1||5.2||5.2|
The Czech Infrastructure RRI score is 65.2 out of 100, remaining stable compared to the previous quarter, but it is still high by regional standards (61.6).
The improving economic environment, the strengthening public sector investment outlook and the increased EU funding lead to the country's Industry Rewards score of 55.0 out of 100, which is high by regional standards ( 50.3).
Compared to the regional average of 67.1, the country scores well in terms of Industry Risks (75.0 out of 100), owing to its competitive and open infrastructure market as well as the presence of the world's largest construction companies.
|Risk/Reward Index||Rewards||Industry Rewards||Country Rewards||Risks||Industry Risks||Country Risks|
The Czech Republic Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Czech Republic Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Czech infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Czech Republic to test other views - a key input for successful budgetary and planning in the Czech infrastructure market.
- Target business opportunities and risks in the Czech infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Czech Republic.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.