The marked turnover increase in the construction sector in recent years continued in the first six months of 2008. Turnover grew by 12 percent relative to the first six months of 2007. Last year’s turnover growth was 10 percent. Turnover growth was most substantial for companies engaged in residential and non-residential building.
Turnover growth construction sector, 12-monthly moving average
More productive hours
The marked turnover growth in the construction sector is partly attributable to an increase in productive hours by over 4 percent compared to the same period last year due to favourable weather conditions in the first half of 2008.
Turnover growth construction sector, first six months of 2008
All branches in construction sector booming
The most prominent part of the construction sector – residential and non-residential building – achieved a turnover growth of 13 percent in the first six months of 2008 relative to the same period last year, but costs also went up. Building costs of new dwellings rose by approximately 4 percent in the first half of 2008. Residential and non-residential building accounts for 45 percent of total turnover in the sector.
Civil engineering accounts for 18 percent of total turnover in the construction sector and rose by 9 percent in the first two quarters of 2008. The costs of civil engineering works also soared (about 7 percent in the first six months of 2008 compared to the same period last year). Other parts of the construction sector, e.g. installers, painters and plasterers realised a turnover growth of 12 percent over the same period.
Turnover growth construction sector by company size, first two quarters of 2008
Small companies perform better
Small construction companies achieved a higher turnover growth in the first six months of 2008 than medium-sized and large companies. This trend was found across the entire sector.
Ingrid Zum Vörde Sive Vörding and Ron Duijkers