European Powers of Construction - Edition 2013
Deloitte Real Estate
We are pleased to present the tenth edition of European Powers of Construction, our annual publication in which we profile the major listed European construction groups and examine their market position and performance in terms of revenue, market capitalisation, internationalisation, diversification, indebtedness and other financial ratios.
As has been observed since the beginning of the financial crisis, the economic recession suffered by Europe is significantly affecting the construction sector. According to the European Commission, 2013 will be the fifth consecutive year of decline in the construction industry in the European Union. Conversely, emerging economies need massive investments in infrastructure in order to cater for population growth and the trend towards the concentration of population in large cities. In addition, certain developed economies have significant investment needs because of the age of their infrastructure or the need to adapt it to current quality, efficiency and sustainability standards. As a result, European construction groups are actively pursuing business opportunities beyond their national borders and diversifying their portfolios.
Whilst internationalisation and diversification continue to play a major role in EPoC strategies, it should not be forgotten that on most occasions these strategies certainly come at a cost. Geographical diversification does not always lead to growth in margins while a broader business portfolio normally has to be acquired and thus leads to higher debt. This publication discusses these issues