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Switzerland Infrastructure Report Q2 2016

Switzerland Infrastructure Report Q2 2016

BMI View: Limited public investment in infrastructure, combined with a mature power sector and analready-extensive transport network, means that growth prospects in the Swiss construction sector remainsubdued. While we do expect to see a slight uptick in fixed capital investment, supported by strong domesticconsumption trends, and note that the country's rail network is set to benefit from a surge in domestic andregional investment, overall there are few other major infrastructure projects in the pipeline outside of thetransport sector. As such we expect to see only low single-digit growth in construction industry valuethroughout the forecast period between 2016 and 2025.

Latest Updates And Structural Trends

While a number of transport projects are planned or underway, we are only seeing limited investment inthe power industry which is dampening overall growth prospects for the Swiss construction sector. Assuch we are maintaining our forecasts for slow growth in construction industry value throughout theforecast period, averaging 1.5% annually.

Although the bulk of growth is concentrated in the transport sector, we are seeing some progress in socialand residential construction. PORR Suisse has won a EUR140mn (USD152.05mn) contract from SwissFederal Railways to construct lot F of the Europaallee shopping mall near the main station in centralZürich. Work will commence in April 2016, with completion slated for March 2019. Europaallee, whichwill have a floor area of about 47,000 square metres, will have 172 apartments in addition to serviceareas, retail and restaurant space.

In a non-residential project ISKA Heuberger Holding AG has announced investment of aroundCHF100mn in the new ZHAW health centre in Winterthur. Swiss firm Implenia has been awarded thecontract to build the training centre, having completed works on Halle 52 on the same site in early 2016.

Construction on the new health centre is expected to commence in 2017.


BMI Industry View
Table: Infrastructure - Construction Industry Forecasts (Switzerland 2015-2021)
Table: Infrastructure Risk Reward Index (Switzerland 2016-2016)
SWOT
Industry Forecast
Latest Updates
Table: Construction and Infrastructure Industry Data (Switzerland 2015-2025)
Structural Trends
Industry Risk/Reward Index
Switzerland - Infrastructure Risk/Reward Index
Risk/Reward Index
Rewards
Risks
NAWE Infrastructure RRI: Outperforming On Risks And Rewards
Table: North America And Western Europe: Infrastructure Risk/Reward Index
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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