MarketLine Blog

Posts about Construction

World’s largest airport under construction in Istanbul

MarketLine

Turkey, and Istanbul in particular, has seen a strong rise in the number of passengers using air travel in recent years. This has been most evident in the case of Ataturk Airport which as the hub of the country’s national airline company Turkish Airlines, has seen its capacity limit pushed to breaking point. With the 2016 terrorist attack at the airport also showing its security vulnerabilities, the city authorities as well as the national government were therefore very keen on building a new airport which could deal with the strong… Read more

Brexit – the meaning of a messy divorce for the Euro area.

MarketLine

The lending channel between many industries and banks in the Euro area has been far from normal since 2008. This factor puts Britain in a better position to negotiate Brexit next year. The Euro area will embark on a period of further unprecedented slowdown by detaching itself from the world’s fourth largest economy. Credit to industries coming from the banking sector is key for the region to grow as the single currency area has a bank-based model as opposed to a capital market model. Debt financing to companies is largely… Read more

Trump’s win is good news for US economy

MarketLine

Donald Trump’s whole mantra during his campaign (as evidenced by his rather natty headwear) has been to ‘Make America Great Again.’ In order to do this, he knows he must make the US competitive on the global stage. He has pledged to reduce taxes heavily for low and middle income Americans and also to make sure that the wealthy (including corporations) do not pay too much as that undermines jobs. This should help boost the currently questionable level of job creation and to increase spending power, which should in turn… Read more

The Olympic Stadium and West Ham’s deal of the century

MarketLine

The Olympic Games was held in London in 2012 much to the joy of the majority of the British public. After an arduous bidding process, the London delegates overcame the bid from Paris and scenes of jubilation from famous sports personalities and members of the royal family were filtered around the world. The Olympics is viewed as a festival of sporting accomplishment and it requires a huge investment from the government, and in turn, the people of the nation in which the event is being hosted. Once the bid was… Read more

Forest products industry sees growth as construction experiences a resurgence

MarketLine

Globally, the forest products industry has seen a remarkable performance across the last five years, fuelled primarily by the Asia-Pacific region. The global resurgence in construction output, with the West finally starting to see a return to growth, has had a significant impact on forest products as industrial roundwood, sawnwood and wood-based panels are all important in construction. The global forest products industry grew by 11.4% in 2013, to reach a value of $817.8 billion, representing a compound annual growth rate (CAGR) of 11% for the period spanning 2009-2013. Growth… Read more

Industry Analysis- Civil Engineering

MarketLine

Introduction The global construction industry grew at a moderate rate in 2013, powered primarily by the developing economies of the Asia-Pacific region, particularly Japan and India, which both experienced strong growth. Comparatively, in Europe the situation was far from ideal, as declines were seen in many economies throughout the region. Strong global growth rates are expected in coming years as some of the developed nations return to more stable growth periods. The Asian market looks set to continue growing at a strong rate, while Western industries appear on the precipice… Read more

The Lego Group: Iconic bricks find the better model

MarketLine

In the year 2000, 68 years after the iconic brick company inception, The Lego Group made a net loss of DKK831m ($155m), its first major loss in all its history the company having never posted a negative result until the late nineties, and a result referred to in the annual report that year as unsatisfactory. It would take the group nearly ten years to remedy that evaluation, and to turn that loss into the substantial return it made in 2011, where, exceeding expectations, the group recorded a net return of… Read more

Is monetary expansion fuelled by Quantitative Easing boosting the construction sector in the United Kingdom?

MarketLine

The Bank of England has flooded commercial banks with money in the aftermath of the financial crisis. The aim of its policy has been to inject money into the economic system and consequently increase investment and consumer spending. How does monetary expansion work? Since March 2009, the bank has bought government debt from pension funds, commercial banks, insurance companies and non-financial firms. Commercial banks selling their government debt to the central bank in exchange for cash should be depositing more money into their own reserves. This extra capital should then… Read more

China: State induced liquidity crunch in order to allocate funds better

MarketLine

Xinhua, the official news agency of the People’s Republic, belatedly explained monetary policy action taken last Thursday, as “It is not that there is no money, but the money has been put in the wrong place”. Although no explicit statement of government policy or intent, Xinhua, considered as an official – in all but name – news agency of the state, explained that the reason the Chinese central bank has allowed interbank lending rates (Shibor) to surge on Thursday was because although banks, the stock market, and SMEs all lacked… Read more

What Remains the Most Prevalent Segment within the Construction Materials Market?

Construction Materials

  In spite of continuing financial and economic uncertainty impacting the global economy, the global construction materials market has recovered from decline in 2009 with strong growth in 2010 and 2011. Growth in 2011 was fairly universal, with both developing and developed markets seeing a healthy return to expansion. The global market grew by 6.4% in 2011, to reach a value of $664.4 billion, representing a compound annual growth rate (CAGR) of 3.6% in the period spanning 2007-2011. Sand, gravel, other aggregates remains the most prevalent segment within the market,… Read more