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Construction and the Construction Products Industry:
CONSTRUCTION REMAINS STABLE
In 2001 output by the construction market totalled almost
20 billion euros. Its value will increase by 6.5 per cent
in 2002. The market is expected to shrink by about one per
cent in 2002. In 2003, however, there will be some increase
in construction.
The international operations of construction companies remained
at a high level. Growth was highest in Scandinavia and the
Baltic countries. The growth in Scandinavia was largely the
result of corporate mergers.
Sweden was the most important country in terms of international
operations. The Scandinavian countries’ total share increased
to 48 per cent. Russia’s share was 20 per cent. The outlook
is good for the Russian market in 2002. In terms of operations
by subsidiaries, Russia’s contribution is small, about
three per cent. The most important countries for activities
by subsidiaries and associated companies were Sweden, Estonia
and Norway.
In 2002 international operations by construction companies
will rise in value to some 840 million euros.
Exports of building products increased in value by only one
per cent in 2001, but totalled 4.5 billion euros. The growth
is expected to continue in 2002.
Correspondingly, imports of building products amounted to
2.4 billion euros, a reduction of three per cent.
The most important countries for exports of building products
last year were Germany, Sweden, the United Kingdom and Russia.
The growth in exports to Russia was in the order of a third
i.e. a return to the level before the devaluation of the rouble
in 1998.
Imports of building products come mainly from the EU and
EFTA countries. In 2001 the amount was 73 per cent. The major
countries that import to Finland are Germany, Sweden, Italy,
Russia and Estonia.
Migration to growth centres increases demand
The construction of business buildings continued in 2001,
when the migration by the population to growth centres continued
at record-breaking speed. The construction of public service
buildings increased, particularly for education and health
care. The good situation in local and central government finances
as a result of the long-lasting economic upturn made the growth
in investment possible.
Overall, construction will remain at a high level during
2002, even though there will be a further slight reduction
in housing construction. Elsewhere, public service construction
continued to be brisk as the migration continued. According
to an estimate, housing starts fell five per cent in 2002,
but in 2003 there will be an upturn if the economy continues
to improve.
Building products market expanding
The building products market has grown more quickly than
actual construction, because some construction has been transferred
from the building site to building products factories. This
trend is expected to continue, so the degree of value added
to the products and the installation service will expand.
The building products market in Finland was about 6.6 billion
euros in 2001. According to the raw-material base, metal industry
products formed the biggest product group in the building
products, chiefly because of the high degree of upgrading.
The second-biggest group was wood products and in third position
came mineral-based products.
Several Finnish construction companies operate in different
areas of construction. For example, the Lemminkäinen
Group operates in civil engineering and the building materials
industry. The Baltic region is the Group’s main market
area. The company is the second-biggest asphalt contractor
in Scandinavia and it operates on the project export market
worldwide. Oy Alfred Palmberg Ab is engaged in private-sector
housing and commercial and industrial developments. Lemminkäinen
Construction Ltd works on international construction projects,
and Lemcon Networks Oy, Lemminkäinen Construction’s
subsidiary, specializes in network-related activities. Tekmanni
Oy, which is part of the Lemminkäinen Group, is a contractor
in the field of technical building services and systems.
Published
2003
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