Construction in Switzerland – Key Trends and Opportunities Forecasted to Gain Steady Growth at a CAGR of 1.52% through 2023

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Albany, US, 2017-Nov-30 — /EPR Network/  :  In real terms, the Swiss construction industry recovered in 2016, after registering a relatively low performance in 2015 due to slow economic growth. This slowdown in construction activity in 2015 was particularly due to the overvaluation of the countrys currency against the euro by the Swiss National Bank (SNB), which had an adverse impact on export trade activity. Additionally, rising unemployment rates and poor private consumption held back economic growth. Consequently, in 2015 the industry posted growth of 0.1% in real terms, following an average annual growth of 2.0% during the preceding three years. The industry rebounded in 2016, supported by a gradual improvement in economic conditions coupled with government investments in the development of the countrys overall infrastructure. 

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The industry is expected to gain some momentum and expand over the forecast period (20172021), supported by a revival in both investor and consumer confidence on the back of an improving economy; this is expected to accelerate the flow of investment in construction projects. Though the persistence of currency overvaluation is expected to weigh on the industrys performance, a slight deceleration in the Swiss franc by the SNB is expected to offer a relatively positive outlook for the industry over the forecast period.

The industrys output value in real terms increased at a compound annual growth rate (CAGR) of 1.52% during the review period (20122016), and is expected to post a CAGR of 2.02% over the forecast period.

Summary
Market Research Hub Construction in Switzerland Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the Swiss construction industry, including:

The Swiss construction industry’s growth prospects by market, project type and construction activity

Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Swiss construction industry

Profiles of the leading operators in the Swiss construction industry

Scope
This report provides a comprehensive analysis of the construction industry in Switzerland. It provides:

Historical (20122016) and forecast (20172021) valuations of the construction industry in Switzerland using construction output and value-add methods

Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

Detailed profiles of the leading construction companies in Switzerland

Reasons To Buy
Identify and evaluate market opportunities using Timetric’s standardized valuation and forecasting methodologies.

Assess market growth potential at a micro-level with over 600 time-series data forecasts.

Understand the latest industry and market trends.

Formulate and validate strategies using Timetric’s critical and actionable insight.

Assess business risks, including cost, regulatory and competitive pressures.

Evaluate competitive risk and success factors.

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Key Highlights
Timetric expects the residential construction market to remain the largest segment, accounting for 32.3% of the industrys total value in 2021. The growing influx of migrants into the country is expected to drive demand for new housing units over the forecast period.

Timetric expects infrastructure construction to be the industrys fastest-growing market over the forecast period, with a CAGR of 3.34% in nominal terms. The market is expected to be supported by government investments in transport infrastructure. In August 2016, the government announced plans to invest CHF13.2 billion (US$13.3 billion) during 20172020 to upgrade and maintain the national rail network infrastructure.

Under the Energy Strategy 2050, the government is planning to increase the countrys energy production capacity from renewable sources. Accordingly, to take advantage of the vast potential of renewables in the municipality of Poschiavo, in November 2016 the federal government of Graubunden announced plans to develop a hydroelectric storage plant with a total installed capacity of 1,000MW.

The Swiss city of Lausanne is preparing to host the Winter Youth Olympics in 2020. Accordingly, in May 2017, construction of a new Olympic village called Vortex began. With an estimated investment of CHF156.0 million (US$158.5 million), the site includes the construction of a ring-shaped building and a 2.8km spiral-shaped ramp.

In order to transform the tourism sector into one of the major drivers of economic growth, the government is focusing on developing the countrys leisure and hospitality infrastructure. Accordingly, the government offers support to the hotel industry through the Swiss Society for Hotel Credit (SGH) which provides financial assistance for the construction and expansion of hotels.

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