|
|
 |
|
Viewing report
|
|
|
|
France Infrastructure Report Q4 2010
Business Monitor International, Sep 2010, Pages: 96
The France Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on France's infrastructure industry.
The recurring theme in France’s construction sector over the past several months has been stabilisation, as the industry continues to stagnate. This stabilisation comes after particularly harsh winter months at the beginning of the year, as well as the Xynthia storm that especially battered France in late-February 2010. Civil engineering was especially hurt during the first several months of 2010 and the construction sector has been slowly thawing in May-July. However, as orders gathered pace in recent months, the evidence for an arrest of the industry’s 4.42% contraction in 2009 slowly but surely grows. BMI expects anaemic growth of 0.42% in the industry through 2010, as the sector settles at a value of EUR112bn (US$144.5bn).
Major recent developments
- The country’s construction and infrastructure majors have been reflecting a slight uptick in activity in recent months. Lafarge saw an increase in cement demand in France in Q210, although volume growth in the country was behind its UK and German markets. In any case, the company marked down its concrete demand outlook for 2010 by the end of July from an increase of up to 5% to between a contraction of 1% and an increase of 3%.
- With France's construction industry struggling to register perceptible growth in 2010, the country's hosting of the UEFA Euro 2016 Football Championship will certainly provide a welcome source of new contracts for developers. France beat off competition from Italy and Turkey to win hosting status in May 2010 and its selection offers some upside potential to our forecasts. However, the upside risk must be quantified, given that the wider infrastructure construction opportunities generated will still be relatively low compared to those in say Ukraine and Poland, which are the hosts of the 2012 tournament. Given the country's debt concerns, it is unsurprising that of the EUR1.7bn due to be invested, about EUR850mn is expected to come from public-private partnerships (PPPs).
- Meanwhile, confirmation that the EUR7.8bn Tours-Bordeaux high speed rail contract in France had been awarded to the VINCI-led consortium in July 2010 cements our view -stemming from our forecasts- that railways in France will contribute the lion's share to infrastructure industry value to the end of our forecasts period and most likely beyond that.
- Elsewhere, Spanish renewables company Acciona Energia is set to break into the notoriously impervious French energy market through a deal with Franco-Spanish solar power group Dhamma Energy, which could provide up to 250 megawatts (MW) in installations within the next three years. The deal carries extra significance given BMI's long-held view that the dominance of France's energy market by national champions has traditionally limited the openness of foreign players to the concession and PPP market.
BMI expects to see growth in the overall construction sector will accelerate to 2.66% in 2011 to EUR116.1bn (US$141.7bn). The sector will expand by 2-3% y-o-y thereafter until growth reaches growth of 3.53% in 2014, when the industry will be worth EUR133.4bn (US$166.7bn).
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
France Infrastructure Report Q1 2012
France Infrastructure Report Q2 2011
France Infrastructure Report Q3 2011
France Infrastructure Report Q4 2011
France Real Estate Report Q4 2011
Singapore Infrastructure Report Q1 2011
Gabon Infrastructure Report Q1 2012
Uganda Infrastructure Report Q4 2010
The Future of Construction in France to 2015: Infrastructure Investments and UEFA Euro 2016 to Drive Construction
Construction in France – Key Trends and Opportunities to 2015
|
|
|
|
