Construction in Russia – Key Trends and Opportunities to 2016: Government Infrastructure Spending to Increase for the 2014 Winter Olympics and 2018 FIFA World Cup

Synopsis

This report provides detailed market analysis, information and insights into the Russian construction market, including:

• The Russian construction market’s growth prospects by sector, project type and type of construction activity
• Analysis of equipment, material and service costs across each project type within Russia
• Critical insight into the impact of industry trends and issues and the risks and opportunities they present to participants in the Russian construction market
• Assessment of the competitive forces facing the construction industry in Russia and profiles of the leading players
• Profiles of the ten largest construction projects in Russia

Summary

The Russian construction industry increased in value at a compound annual growth rate (CAGR) of 7.99% during the review period (2007–2011). This was supported by significant private and public investments in Russian commercial, industrial, infrastructural and residential construction projects. Many of these investments are directly related to Russia’s hosting of the 2012 Asia-Pacific Economic Cooperation (APEC) Summit, the 2014 Winter Olympic Games and the 2018 FIFA World Cup. As a result of the high demand for infrastructure due to upcoming international sporting and trade events, the Russian construction industry is expected to register a CAGR of 10.13% over the forecast period (2012–2016).

Scope

This report provides a comprehensive analysis of the construction industry in Russia:

• Historical (2007-2011) and forecast (2012-2016) valuations of the construction market in Russia using the construction output and value-add methods
• Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
• 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)
• Analysis of key construction industry issues, including regulation, cost management, funding and pricing
• Assessment of the competitive environment using Porter’s Five Forces
• Detailed profiles of the leading construction companies in Russia
• Profiles of the top ten construction mega-projects in Russia by value

Reasons To Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level via 600+ time series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies by leveraging our critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Highlights

• Infrastructure development fueled by the 2014 Winter Olympics Games, the 2012 APEC summit and the 2018 FIFA World Cup will act as a major growth driver over the forecast period.
• A federal budget of US$12 billion was allocated to develop Sochi for preparation of the 2014 Winter Olympic Games during 2006–2014. Additional private investment for the 2014 Winter Olympics will also finance the improvement of tourist infrastructure, Olympic venues, transport infrastructure and power supply infrastructure.
• An increase in the average salary of Russians during the review period and high inflation has added to construction costs. Additonally in 2011, minimum monthly wages in Russia were estimated to have reached RUB4,600 by growing at a rate of 6.5% per year.
• The country’s business-friendly policies encourage new construction companies to conduct business operations, which is resulting in higher competition in the domestic construction industry. "