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Construction Business Confidence Report Q4 2014

Construction Business Confidence Report Q4 2014

Synopsis

“Construction Business Confidence Report Q4 2014” is a new report by Timetric that globally analyzes industry opinions on the latest economic and customer issues, and their impact on investment decisions and growth prospects in the construction industry. This report also examines executives' opinions on the current and future state of the economy and its effect on the industry. It analyzes the likely effect of supplier price changes, sales performance, and staff headcount within the industry over October–December 2014. In addition, it provides an overview of the key priorities, threats, and opportunities for the global construction industry over October–December 2014.

Summary

  • The report examines the prevailing economic conditions and executives' opinions of the global economy and the state of the economy in various regions.
  • The report provides industry executives’ expectations on the growth prospects of their company and the industry as a whole over October–December 2014.
  • The report analyzes construction industry executives’ opinions on changes in consumer confidence, globally, over October–December 2014.
  • The report determines expected changes in supplier prices across various categories, and their impact on business confidence, and examines key factors influencing the change.
  • The report tracks the expected change in staff headcount and sales among industry executives operating in various regions, over October–December 2014.
  • The report ascertains the various investment activities on which the industry executives intend to focus on over October–December 2014.
  • The report examines industry executives’ attitudes to various business concerns, and provides regional analysis.
  • The report identifies the immediate business priorities of construction industry executives over October–December 2014.
Scope

The report features the opinions of Construction industry respondents about the economic overview covering the following aspects:
  • The state of the economy
  • Growth prospects and customer confidence
  • Supplier prices and levels of expenditure
  • Organizational outlook and strategy
Reasons To Buy
  • This report is the result of an extensive survey drawn from Timetric’s exclusive panel of leading construction industry executives.
  • The report analyzes current economic conditions prevailing around the world and their impact on the construction industry.
  • The report forecasts company and industry growth prospects over October–December 2014.
  • The report provides information on the impact consumer confidence, supplier prices, and staff headcount are likely to have on the investment decisions of industry executives over October–December 2014.
Key Highlights
  • Overall, 39% of construction respondents state that they are operating in a stable economic environment, while 25% state that their current economic conditions are favorable.
  • The majority of global construction industry respondents anticipate positive growth for both the company and industry over October–December 2014.
  • Executives from the Rest of the World anticipate an increase of 5.1% and 4.1% respectively in sales growth and staff headcount in Q4 2014.
  • Improving operational efficiency and protecting and growing market share are the most popular priorities by construction industry executives operating across all regions.


  • Definitions
  • Methodology and sample size
    • PROFILE OF RESPONDENTS
    • Overall the confidence index stands at 4.8 for Q4 2014, in comparison to 3.9, 4.2 and 5.0 for Q3, Q2 and Q1 2014 respectively
  • The state of the economy
    • STATE OF THE ECONOMY: KEY POINTS
    • Overall, 25% of executives consider current operating conditions in the global economy to be favorable
    • Economic conditions are deemed to be favorable in Asia and the Middle East
    • In comparison to Q3, Q2 and Q1 2014, economic conditions are expected to be more favorable in Asia in Q4 2014
    • Executives in North America and Europe have less favorable opinions of economic conditions
    • THE STATE OF THE ECONOMY: IN THEIR WORDS
  • Growth prospects and consumer confidence
    • GROWTH PROSPECTS AND CONSUMER CONFIDENCE: KEY POINTS
    • The majority of executives have a positive outlook with regards to company and industry growth prospects
    • Executives are less optimistic about industry growth prospects in Q4 2014 compared to Q3, Q2 and Q1 2014
    • Confidence in company growth is stronger in Asia-Pacific and Europe
      • Table How optimistic are you about your industry's and company's growth prospects over the next quarter? Oct 2014-Dec 2014
    • Executives operating in the Rest of the World expressed confidence in industry growth in Q4 2014, compared to Q3 2014
    • Most executives project a positive change in consumer confidence over the next quarter
    • Optimism over consumer confidence is lower among those operating in Europe
    • Executives from Asia-Pacific and the Rest of the World expect an increase in consumer confidence in Q4 2014, compared to Q3 2014
    • SUPPLIER PRICES AND CONSUMER CONFIDENCE: IN THEIR WORDS
  • Supplier prices and levels of expenditure
    • SUPPLIER PRICES AND SALES PERFORMANCE: KEY POINTS
    • Business operatives from the Rest of the World expect an increase in supplier prices of machinery and equipment in Q4 2014
    • On average, prices of raw materials are expected to increase by 2.9% over the next quarter
      • Table How do you think supplier prices will change over the next quarter compared to what they are now? Raw Materials (Oct 2014-Dec 2014)
    • Executives expect a decreasing trend in raw material prices in Q4 2014, compared to Q3 2014
    • Overall, 35% of executives from Asia-Pacific expect an increase of `4% to 7.99%' in supplier prices of machinery and equipment
      • Table How do you think supplier prices will change over the next quarter compared to what they are now? Machinery and Equipment (Oct 2014-Dec 2014)
    • The Rest of the World region indicated a significant increase in machinery and equipment prices in Q4 2014
    • Supplier prices of power and energy are projected to increase by 2.8% over the next quarter
      • Table How do you think supplier prices will change over the next quarter compared to what they are now? Power and Energy (Oct 2014-Dec 2014)
    • In comparison to Q3 and Q2 2014 results, supplier prices of power and energy for Q4 2014 noted a gradual increase in Europe
    • Executives from the Rest of the World anticipate increases of 5.1% and 4.1% in sales growth and staff headcount respectively in Q4 2014
      • Table How do you think the following will change over the next quarter compared to what it is now? (Average figures) (Oct 2014-Dec 2014)
    • Global construction industry executives expect increased investments in new product development for Q4 2014
      • Table How do you think spend will change on the following activities over the next quarter, compared to the previous quarter in your organization?
    • Expenditure on new product development, and mergers and acquisitions are expected to rise in Q4 2014, compared to Q3 2014
      • Table How do you think spend will change on the following activities over the next quarter, compared to the previous quarter in your organization?
  • Organizational outlook and strategy
    • PRIORITIES AND CONCERNS: KEY POINTS
    • Economic, industrial and societal issues can impact operations, profitability and business strategies
    • The performance of the eurozone and developing economies are key economic concerns for business executives from Europe
    • Globally, rising new competition and social unrest in areas of operation are the key concerns in Q4 2014
    • Globally, the performance of the eurozone and developing economies are key concerns among executives
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said `concerned' or `very concerned')
    • Concern over the performance of developing economies increased by seven percentage points in Q4 2014, as compared to Q3 2014
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): Global
    • Business operatives from North America are more worried about the performance of developing economies in Q4 2014, compared to Q3 2014
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): North America
    • In comparison to Q3 2014, European respondents are more concerned about the impact of economic factors on their company's performance in Q4 2014
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): Europe
    • Asia-Pacific respondents' concern over unemployment levels decreased significantly in Q4 2014, compared to Q3 2014
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): Asia-Pacific
    • Concern over the performance of the eurozone has decreased by 38 percentage points in Q4 2014, as compared to Q3 2014
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): Rest of the world
    • New competition and social unrest in areas of operation are the key concerns of global construction industry executives
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said `concerned' or `very concerned')
    • Threat of social unrest in areas of operation and cyber-crime activities reduced in Q4 2014, as compared to Q3 2014
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): Global
    • North American executives' concerns over health epidemics increased considerably
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): North America
    • Concerns about product/service safety scares intensified in Q4 2014, compared to Q3 and Q2 2014
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): Europe
    • In Q4 2014, industrial and social and political concerns decreased noticeably in comparison to the previous two quarters
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): Asia-Pacific
    • Concern over rising new competition decreased significantly in Q4 2014, as compared to Q3, Q2 and Q1 2014
      • Table How concerned are you about the following and the impact that they could have on your company's performance over the next quarter? (Those who said "concerned" or "very concerned"): Rest of the world
    • Globally, respondents intend to engage in activities which aid in increasing their operational efficiency
    • Industry competitors across the world will focus on improving operational efficiency, and protecting and growing market share in Q4 2014
    • In Q4 2014, reducing costs is set to be the key priority of construction executives operating in the Rest of the World region
      • Table How much of a priority are the following over the next quarter for your organization? Those who said "high" or "very high" (Oct 2014-Dec 2014)
    • North American executives intend to decrease their focus on protecting and growing market share in Q4 2014, compared to Q3 2014
      • Table How much of a priority are the following over the next quarter for your organization? Those who said "high" or "very high" (Change compared to last quarter)
  • Appendix

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