By Sarah Trefethen
Construction is picking up around the world, according to a new report. In the Middle East alone, $1.3 trillion of construction work is being planned.
Next year will see more construction projects than in the previous 12 months in Brazil, Russia, Canada, Singapore, Germany, the UAE, Japan, Uganda, Malaysia, the UK, Oman, the US and Qatar, according to Turner & Townsend’s international construction cost survey for 2013.
“The start of a global recovery is a great time to build,” the report said. “First-mover advantages include stabilized construction costs, reduced schedule risk and the delivery of projects as demand is increasing. In many regions, tender prices are becoming more competitive and there are plenty of firms keen to bid.”
Countries with few construction projects expected include China, India, the Netherlands, Poland, South Africa and South Korea. Construction activity is expected to stay level in Australia, Hong Kong, Ireland and Vietnam.
The improvement in the US economy over the past 12 months has been felt around the world, according to the report.
“Falling unemployment and recovering house prices will encourage US consumers to spend more, providing a much-needed boost to international trade and construction. Still, the US recovery remains fragile, operating within the confines of a quantitative easing headwind and continued government impasses.”
In the Middle East, infrastructure projects such as high-speed rail, manufacturing plants, heavy industrial plants, football stadiums, and housing and cultural precincts are moving to construction or already underway, according to the report. Dubai, a traditionally strong market, is gradually coming back to full strength and Qatar is emerging as a new construction leader.
Construction is also picking up in Japan, according to the report, where trade skills shortages are also becoming a problem