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BOOM IN NORDIC CONSTRUCTION SECTOR
The Nordic construction market was characterized by strong conditions during 2006. Housing investments continued to increase, while civil engineering investments intensified and the market for commercial property projects strengthened. For 2007, continued growth of about 3 percent is expected in the Nordic market.
The housing market reacts most quickly to economic cycles, since sales are directly to consumers. Other building construction (offices, industrial and public premises), as well as the civil engineering market, is subject to a greater lag,
since such projects are dependent on investment plans in other sectors. This also results in construction projects frequently being procured during one economic cycle and produced during the next. In addition, major projects generally
extend over a longer period. Major infrastructure projects can also function as economic balances and are influenced by political decisions and national budget considerations
Infrastructure projects can function as economic balances and are affected by political positions and national budget considerations.
Find more information about the market trend under 2005 in our latest annual report.
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COMPETITORS
The Nordic construction market is national and very fragmented. In the local markets, NCC competes with many smaller contracting companies. Major civil engineering projects in the Nordic region are often procured in the face of international competition with Europe's major construction companies, with the largest projects frequently conducted in consortia.
At the Nordic level, NCC's primary competitors are Skanska and Peab of Sweden, MT Højgaard of Denmark, Veidekke of Norway and YIT and Lemminkäinen of Finland. In Sweden, JM is a major competitor in housing construction. Within civil-engineering projects and road construction as well as asphalt and paving in the Nordic region, state and municipal production units, such as the Swedish Road Administration's Production Division in Sweden and Mesta in Norway, are other significant competitors. In Denmark and Finland, Colas and CRH are competitors in asphalt and aggregates.
NCC Property Development primarily works in the Nordic region's major cities. The number of competitors in property development is numerous, ranging from both individual property owners and traditional property companies to other major construction companies. In certain markets, there are also pure property development companies.
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