Today: November 29, 2015, 9:49 am

Romanian construction market forecast to see revenues increase by 6.6% CAGR during 2012 to 2017
Construction in Romania - Key Trends and Opportunities to 2017 - a new market research report on 2014-03-27 09:26:01

This report provides detailed market analysis, information and insights into the Romanian construction industry, including:
• The Romanian construction industry´s growth prospects by sector, project type and type of construction activity
• Analysis of equipment, material and service costs across each project type within Romania
• Critical insight into the impact of industry trends and issues and the risks and opportunities they present to participants in the Romanian construction industry
• Assessment of the competitive forces facing the construction industry in Romania and profiles of the leading operators
• Data highlights of the largest construction projects in Romania.


This report provides a comprehensive analysis of the Construction industry in Romania:
• Historical (2008-2012) and forecast (2013-2017) valuations of the construction market in Romania using the 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
• Assessment of the competitive environment using Porter´s Five Forces analysis
• Detailed profiles of the leading construction companies in Romania

Reasons To Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level via 600+ time-series data forecasts
• Understand the latest industry and market trends
• Formulate & validate business strategies by leveraging our critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Highlights

• The Romanian construction industry suffered a recession and slowdown in output due to the financial crisis in 2009. The country recorded a small recovery in 2011, and continued to show signs of recovery until 2012. From January to May 2013 the construction production index recorded an average decline of -7.7%, but began to grow during June–September 2013 as the index grew by an average of 5.1%. This indicates that the industry is still fragile and failing to match its pre-financial-crisis growth rates, but is displaying signs of stability as a basis for sustained recovery. This growth is largely attributed to the increase in the real estate prices and strong support from public investment. According to the National Institute of Statistics (INS), the economy grew by 4.1% in the third quarter of 2013 compared to the same period in 2012.

• According to the World Economic Forum´s Global Competitiveness Report 2013–2014, Romania ranked 106th out of 148 economies in terms of overall infrastructure quality. The quality of its roads ranked 145th, the quality of its rail infrastructure ranked 82nd, and the quality of its ports ranked 123rd. The government is investing heavily to improve the country´s infrastructure and make it more effective for transport and logistics.
• In Transparency International´s Corruption Perception Index 2013, Romania is ranked 29th out of the 31 countries in the European Union (EU). The country´s relative difficulty in conducting business and its high level of corruption creates a barrier of entry for new construction companies. In July 2013, Romanian Transport Minister Relu Fenechiu was sentenced to five years in jail on charges of illegally selling second-hand electrical equipment as new. Corruption of this nature is common, and damages the reputation of the construction industry.
• According to the INS, the country´s exports increased by 8.4% in the first three quarters of 2013, whereas imports decreased by 0.7%. In the second half of 2013, the Romanian government devised a new strategy to increase exports to China, the US, Russia and Arab countries over 2014–2020. The strategy involves the implementation of an advocacy group consisting of multinational companies, banks and foreign business consultants to direct the government in increasing exports and industrial capacity.

• The Romanian government is introducing a tax on special construction projects, which would result in a yearly cost of RON178,525 (US$55,104) for each wind turbine in Romania. This could generate an added cost of RON133.9 million (US$41.3 million) for the entire renewable energy sector in Romania, according to the Association for Wind Energy. As a result, construction in the renewable energy sector could be reduced.

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