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France Infrastructure Report Q2 2016

France Infrastructure Report Q2 2016

BMI View: The construction industry should return to growth in 2016, with 0.74% real growth after years of strong contraction. Nevertheless, growth will remain weak over the next few years as a weak domestic economic environment and ongoing policy and regulatory uncertainty are undermining investor confidence and we expect to see limited gains in terms of fixed capital formation.

Latest Updates And Structural Trends

Weaknesses in France's labour market - in terms of unemployment and lack of competitiveness - support our modest outlook over the country's construction industry.

The outlook for the housing market remains bleak as economic uncertainty and stubborn unemployment rates prevent a recovery in the demand for housing. However, a small recuperation in housing permit applications should stop the contraction and enable minimal, but positive growth in the sector for 2016.

Transport infrastructure remains the strongest sector in France's construction market, with annual average growth of 3.0% expected throughout the forecast period to 2025. Railway projects attract the majority of the investment in the sector.

France's energy and utilities infrastructure sector is expected to record minimal growth in 2016, will slightly contract in the years thereafter and lose market share to the more vibrant transport infrastructure sector throughout our forecast period to 2025. We are however, increasingly optimistic over opportunities in the solar and wind power sectors on the back of improved regulatory clarity, strong government support and ambitious targets for non-hydropower renewable, as highlighted by our Power and Renewables team. This presents upside risks to our forecast over the coming quarters based on industry uptake and confidence towards financing the sector.


BMI Industry View
Table: Infrastructure - Construction Industry Forecasts (France 2015-2021)
Table: Infrastructure Risk/Reward Index (France)
SWOT
Infrastructure SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Latest Updates
Table: Construction And Infrastructure Industry Data (France 2015-2025)
Structural Trends
Transport Infrastructure - Outlook And Overview
Latest Updates
Table: Transport Infrastructure Industry Data (France 2015-2025)
Structural Trends
Table: Key Projects: Transport
Energy And Utilities Infrastructure - Outlook and Overview
Latest Updates
Table: Energy And Utilities Infrastructure Data (France 2015-2025)
Structural Trends
Table: Key Projects: Energy & Utilities
Residential/NonResidential Building - Outlook And Overview
Latest Updates
Table: Residential and Non-Residential Building Industry Data (France 2015-2025)
Structural Trends
Table: Key Projects: Construction & Social Infrastructure
Industry Risk Reward Index
France - Industry Risk/Reward Index
Rewards
Risks
Europe - CEE Infrastructure RRI: Heightened Risks Belie Growing Rewards
Table: Infrastructure Risk/Reward Index
Market Overview
Competitive Landscape
Table: France - Company Financial Data
Company Profile
Bouygues Group
EDF Group
VINCI Group
Table: VINCI 2014 Key Financial Results Table
Methodology
Industry Forecast Methodology
Sector-Specific Methodology
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Infrastructure Risk/Reward Index Indicators
Table: Weighting Of Indicators

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