Strong turnover rise for large construction companies in 2007

The turnover of large construction companies in the Netherlands rose by just over 10 percent in 2007. In 2006 this increase was still only 3 percent. The growth rate for large companies is the same as for the whole of the construction industry and for small and medium-sized companies in this sector of industry.

Turnover in construction industry

Turnover in construction industry

Medium-sized companies account for 40 percent of turnover

Total turnover in the construction industry topped 80 billion euro for the first time in 2007. Small construction companies accounted or 22 percent of this amount, medium-sized companies for 41 percent and large companies for 37 percent. The distribution of turnover between these three groups was almost the same in 2007 as in 2006.

Distribution of turnover in construction industry, 2007

Distribution of turnover in construction industry, 2007

Building costs up

The increase in turnover in the construction industry was accompanied by an increase in building costs. Building costs for residential construction, for example, rose by 4 percent, while those for civil engineering construction rose by more than 5 percent.

Small businesses account for 90 percent of companies

Overall there were nearly 86 thousand companies in the Dutch construction sector at the beginning of 2007. More than 90 percent of these were small companies, 9 percent medium-sized and one half of a percent large companies.

More than 50 percent of construction companies were ‘specialised companies’. They include 44 thousand businesses of joiners and carpenters, painters, plumbers, and plasterers.

Some 40 percent of companies were active in residential and non-residential construction in 2007, and just over 7 percent in civil engineering. Paving contractors accounted for the largest branch within civil engineering, with nearly 2.6 thousand companies.

Ron Duijkers, Ingrid Zum Vörde Sive Vörding