Consistent with last year, France leads the pack with four of the top ten European construction companies and the UK continues to dominate the top 100. Eighty-three companies reported revenue growth. Average net income in 2006 was 5.1% – up from 3.7% in 2005.

As the fifth annual review of the top European construction companies by Deloitte further reveals, the largest companies are characterised by their international operations and expansion into new markets. Although the large international contractors have mostly developed the markets for themselves, Central and Eastern Europe still offers good opportunities for expansion, particularly for middle market construction companies.

Construction industry in the Slovak Republic

In 2006 the Slovakian construction industry reflected the country's strong economy, experiencing a construction boom – growing 15%. Economic growth of 8.3%, relatively low inflation at 4.5% unemployment stood at 13%, and household consumption was up, while the Slovak crown strengthened. The newly-elected Government confirmed that there will be no major changes in economic policy and remained committed to the introduction of the Euro in 2009.

Residential construction experienced strong growth of just over 17%. Most of the activity was in Bratislava, as well as other cities which are benefiting from large amounts of foreign investment such as Zilina, Trnava, and Nitra.

Non-residential construction also saw strong growth of more than 17%. This was largely due to the strong flow of FDI into the country, mainly in the form of greenfield investment. The office sub-sector performed best through 2006 growing over 21%.

Civil engineering experienced the strongest growth in the road sector. At the end of 2006, Slovakia had 349km of motorways and 136km of motorways the Government has plans to build a further 704km and 833km of speedways.

Investments in railway construction, were directed mainly at the reconstruction and modernisation of railways in Western Slovakia and stations in East Slovakia (Presov and Poprad), as well as track electrification in Central Slovakia. Further investments have been made in the Paris-Vienna-Bratislava railway corridor and the connection to Bratislava airport.

The outlook for the Slovakian construction industry is quite positive. With the need for additional housing, further inflows of greenfield FSI and EU funds for infrastructure projects are likely to be driving forces going forward. The civil engineering and residential sectors are expected to be the most dynamic.

About the report

European Powers of Construction 2007, our fifth annual publication, looks at construction company performance. This publication features: a top 100 construction company listing; interviews with the top executives at ACS Group in Spain, HOCHTIEF in Germany, and STRABAG in Austria; a series of featured articles covering challenges surrounding entry to new markets, the US infrastructure market, the evolving role of cash and working capital management, a review of M&A activity in the UK construction sector, improving governance and managing risk, and challenges for the construction industry in delivering sustainable heat and power. As in our previous publications we have compiled key data on market statistics, trends, top construction companies, the PFI/PPP market, and M&A activity on a country-by-country basis.