The future of the global construction industry appears to be so bright you just might want to wear shades. A recent market research report predicts that this sector will grow more than four percent internationally in the next four years. This construction news includes a projection that more project opportunities are on the way in residential, non-residential and infrastructure.
Construction Industry is Growing Stronger
Both locally and globally, contractors could reap the benefits of a stronger economic climate.
- From 2018 to 2023, the global construction industry is forecasted to grow 4.2 percent.
- By 2023, the value of construction activity is expected to be $10.5 trillion.
This global spike in construction work is an emerging trend that will likely be influenced by increased housing starts and expanding infrastructure due to a rising global population. Other promising signs include higher demand for green infrastructure and increased rehabilitation of aging structures.
The uptick in new projects could impact all corners of the global construction industry in the coming years.
International Study Finds Reasons to Remain Optimistic
The construction news study, which was conducted by Market Research Hub, analyzed the outlook of the industry in six major global regions: North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific and the Middle East and Africa.
After analyzing data from 50 countries, the researchers found that although the international construction industry experienced modest growth in 2016. There also found good reason to expect an improvement in the next five years.
- The pace of growth was 2.4 percent in 2016.
- The global compound annual growth rate in the next five years is expected to be 4.2 percent.
- The world economy is projected to grow 3 percent per year during that time.
Report Shows Good Construction News Worldwide
The industry is projected to grow steadily because of trends in the wider global economy. The researchers were cautiously optimistic despite several key risks, including Chinese economic policy. The Asia-Pacific region will likely be the largest market in the next five years, because of increasing urbanization and higher expenditures on infrastructure development.
In the global construction industry, residential building is expected to remain the largest segment. Researchers said residential should experience above average growth due to improved economic factors, like low interest rates.
Whether you work in construction in New York or Southeast Asia, this construction news could point to a more profitable future.