Economic outlook February 2016 Conferederation of Finnish Construction Industries RT 16 th February 2016 Sami Pakarinen
Economic outlook
February 2016
Conferederation of Finnish Construction Industries RT
16th February 2016
Sami Pakarinen
Construction Sector Output 2014
Total €28.8bn
Building Construction €22.5bn
Non-Residential €4.9bn
Residential €6.8bn
Non-Residential €6.0bn
Repair and Maintenance €11.7bn
New Building €10.8bn
Civil Engineering €6.3bn
Maintenance €1.7bn
Investment €4.6bn
Residential €4.8bn
Source: Statistics Finland, Forecon Oy
Metal 33%
Chemistry 14%
Forest 12%
Food 7%
Others 14%
Construction 19%
Industry and construction output in 2014 €153bn
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Obstacles to Start Privately Financed Housing Production
0 % 50 % 100 %
Inreased demand for other buildings
Expectations of a rise in interest rates
Lack of skilled labour, workers
Lack of skilled labour, salary earners
Rise in building costs
Lack of plots (Helsinki area)
Lack of plots (Outside Helsinki area)
Price of land too expensive
Price level do not guarantee profitability
Insufficient demand
Harms very much Harms somewhat No effect
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Source: RT
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Distribution of Civil Engineering
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Connecting com-
munities 32 %
Construc-tion of
community 30 %
Work done on building
site 38 %
Source: Statistics Finland
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Ohje
• Tätä pelkistettyä
diatyyppiä voit käyttää
silloin, kun lisäät sivulle
esimerkiksi taulukon tai
muun elementin, joka ei
sovi yhteen graafisten
kuvioiden kanssa.
Housing production forecast
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Housing starts 2012 2013 2014 2015 2016
Terraced houses and blocks of flats 20 100 19 600 19 200 22 200 22 700
Non-subsidised housing 13 900 13 200 11 800 13 600 14 700
ARA housing 6 200 6 400 7 400 8 600 8 000
Detached houses 9 800 8 100 6 900 6 000 6 000
Non-subsidised housing 9 800 8 100 6 900 6 000 6 000
Other buildings 1 100 200 200 300 300
Total 31 000 27 900 26 300 28 500 29 000
Non-subsidised housing 24 800 21 500 18 900 19 900 21 000
ARA housing 6 200 6 400 7 400 8 600 8 000 Source: Statistics Finland, ARA, RT
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Economic Indicators of Finnish construction Industry 2012 2013 2014 2015 2016 Gross Domestic Product. change of volume , % -1,4 -0,8 -0,7 0,0 1,0
Euribor, 3-month. % 0,6 0,2 0,2 0,0 0,0 Index of wage and salary earnings, change, % 3,2 2,1 1,5 1,1 1,0 Building cost index, change, % 2,4 1,0 1,0 0,5 0,5 Construction. change of volume, % -5,3 -2,0 -3,5 -1,0 2,5
Building renovation and modernisation -2,0 -0,7 2,5 2,5 2,0 Investment in construction -5,6 -4,4 -4,5 -1,0 2,5 Buildings -5,6 -6,1 -5,8 -0,9 3,1 Civil engineering -5,4 4,2 1,8 -1,0 0,0
Building starts, mill. m3 37,1 33,7 31,6 32,1 32,1 Residential buildings 12,4 11,0 9,9 9,9 10,0 Free-time residential buildings 0,9 0,9 0,8 0,6 0,6 Commercial buildings 6,5 4,7 5,4 5,8 5,4 Public buildings 2,8 3,2 2,8 3,5 3,6 Industrial and warehouse buildings 8,6 7,3 6,6 7,6 7,8 Agricultural buildings 3,4 4,1 3,8 2,5 2,5 Other buildings 2,6 2,6 2,4 2,2 2,3
Housing starts. number of dwellings 31 000 27 900 26 300 28 500 29 000 privately financed 24 800 21 500 18 900 19 900 21 000 state subsidized 6 200 6 400 7 400 8 600 8 000
Employment in construction sector, persons 175 250 175 500 168 833 167 500 171 000
Value of international operations of construction companies, bill. € 1,8 1,8 2,0 0,0
Operating profit before depreciation of construction companies, % 3,8 4,5 4,2 4,2 Operating profit before depreciation of construction product companies, % 7,7 6,9 6,8 8,5