Construction in South Africa – Key Trends and Opportunities to 2016

Synopsis

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

• The South Africa 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 South Africa
• Critical insight into the impact of industry trends and issues and the risks and opportunities they present to participants in the South Africa construction market
• Assessment of the competitive forces facing the construction industry in South Africa and profiles of the leading players
• Profiles of the ten largest construction projects in South Africa

Summary

The South African construction industry increased in value at a compound annual growth rate (CAGR) of 15.54% during the review period (2007–2011). This was supported by the 2010 FIFA World Cup, which acted as a catalyst to the growing South African construction industry. The infrastructure market was the largest beneficiary of the 2010 FIFA World Cup, as most construction activity involved road, public transport and other infrastructure-related developments. Over the forecast period (2012–2016), the industry is expected to register a CAGR of 9.61%, as against the review-period CAGR of 15.54%, due to the continuing euro-zone crisis which is dampening global business sentiment.

Scope

This report provides a comprehensive analysis of the construction industry in South Africa:
• Historical (2007-2011) and forecast (2012-2016) valuations of the construction market in South Africa 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 South Africa
• Profiles of the top ten construction mega-projects in South Africa 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 construction was the largest market in the South African construction industry during the review period. In 2011, it constituted a 47.7% share of the industry’s value.
• The infrastructure market was the largest beneficiary of the 2010 FIFA World Cup, as most construction activity involved road, public transport and other infrastructure-related developments.
• The government of South Africa enjoys the upper hand when it comes to foreign investment attractiveness. As the country holds a strategic location in the African continent, it is positioned as a significant country due to the size of its economy and its ranking as an upper-middle-income country.
• The country faced the challenge of a power shortage in 2007, which impacted the industrial sector, while the country was already suffering from high inflation and outdated infrastructure facilities.
• Supported by residential and infrastructure construction activities, the construction industry in South Africa is estimated to grow at a CAGR of 9.61% over the forecast period.