Construction Outlook in China

Construction expenditures in China will benefit from upgrades to the country’s transportation infrastructure and utilities’ expansion, plus government efforts to fuel personal income levels.

Demand to increase 8.5% per year through 2017

Construction expenditures in China are expected to increase 8.5 percent per year in real terms through 2017. On-going urbanization and industrialization, rising income levels, further population and household growth, and the government’s continuing efforts to expand and upgrade physical infrastructure in the country will support healthy growth in construction spending.

Construction expenditure uses nearly evenly split

Construction expenditures in China are nearly equally split among residential buildings, nonresidential buildings, and nonbuilding structures. Each of these segments accounted for around one-third of the total construction market in 2012. Nonbuilding construction will see the fastest growth (in real terms) through 2017. Increases will benefit from state-led efforts to expand and upgrade the country’s transportation infrastructure, such as the “7918” highways network, subway systems in major cities, and several airports. Utilities construction will also contribute to nonbuilding construction spending gains, particularly in fast growing urban areas, as the government continues to expand and improve access to such infrastructure as water supply, sewage treatment, rubbish disposal, and gas distribution. Further efforts to raise the country’s power generation capacity and improve electricity transmission networks will stimulate spending on nonbuilding construction.

Nonresidential buildings to see best annual gains

Inflation-adjusted nonresidential building construction expenditures are forecast to post the best annual gains through 2017. Growth will be led by strong advances in industrial building construction. The manufacturing sector in China will con-tinue to expand quickly, benefiting from robust increases in consumer spending for manufactured goods, accommodative government policies, and foreign direct investment. Spending on residential buildings will be slightly less through 2017, with market gains primarily driven by continuing population migration from rural to urban areas and supported by rising personal income levels. Despite strong gains in housing construction over the last decade, living conditions remain poor for some residents due to uneven distribution of housing ownership in urban areas in China.

Central-East to remain largest regional market

The Central-East region, home to about one-third of the country’s total population and economic output, supports the largest regional construction market and will account for the majority of total construction spending in China in 2017. Construction expenditures in the Northwest region are expected to enjoy the fastest growth, benefiting from the gov-ernment’s “Great Western Development” strategy and rising personal incomes.

Study Scope

This study analyzes the 13.3 trillion yuan construction industry in China. It presents historical demand data for 2002, 2007 and 2012 and forecasts for 2017 and 2022 by market (residential building, nonresidential building, nonbuilding), structure type (e.g., single family housing, multifamily housing, industrial, office and commercial, roads, utilities), and geographic region.

The study also considers market environment factors, details industry structure, evaluates company market share, and profiles 38 industry participants such as China State Construction Engineering, China Railway Construction, and China Railway Group.

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Purchase Construction Outlook in China by the Section

  1. Construction Outlook in China

    $5,300.00

    1. 1 INTRODUCTION

      $249.00

    2. 2 EXECUTIVE SUMMARY

      $205.00

      1. Table | CONSTRUCTION EXPENDITURES IN CHINA (billion 2011 yuan)

    3. 3 MARKET ENVIRONMENT

      $2,579.00

      1. 3.1 General

        $92.00

      2. 3.2 Economic Overview

        $410.00

        1. 3.2.1 Recent Economic Performance

          $136.00

        2. 3.2.2 Economic Outlook

          $228.00

          1. Table | GROSS DOMESTIC PRODUCT OF CHINA

      3. 3.3 Demographic Overview

        $313.00

        1. 3.3.1 Population

          $141.00

          1. Table | POPULATION OF CHINA (million persons)

        2. 3.3.2 Urbanization

          $82.00

        3. 3.3.3 Households

          $82.00

          1. Table | HOUSEHOLDS IN CHINA BY REGION (million units)

      4. 3.4 Industrialization & Manufacturing Trends

        $167.00

        1. Table | MANUFACTURING VALUE ADDED IN CHINA (billion 2011 yuan)

      5. 3.5 Gross Fixed Capital Formation Trends

        $93.00

        1. Table | GROSS FIXED CAPITAL FORMATION IN CHINA BY REGION (billion 2011 yuan)

      6. 3.6 Labor Force & Employment Patterns

        $162.00

        1. Table | EMPLOYMENT TRENDS IN CHINA, 2002-2012

      7. 3.7 Personal Income Trends

        $159.00

        1. Table | PER CAPITA GROSS DOMESTIC PRODUCT IN CHINA BY REGION (2011 yuan)

      8. 3.8 Banking System & Regulations

        $280.00

        1. Table | INTEREST RATES IN CHINA, 2002-2012 (annual percentage rate)

      9. 3.9 Currency Exchange Rates

        $139.00

        1. Table | CHINESE CURRENCY EXCHANGE RATES, 2002-2012 (yuan per foreign currency)

      10. 3.10 Inflation & Pricing Patterns

        $140.00

        1. Table | CONSTRUCTION PRICING DEFLATORS IN CHINA (2011=100)

      11. 3.11 Legal & Regulatory Environment

        $304.00

      12. 3.12 Construction Technology & Quality

        $146.00

      13. 3.13 The Twelfth Five-Year Plan

        $172.00

    4. 4 OVERVIEW

      $640.00

      1. 4.1 General

        $82.00

      2. 4.2 Construction Expenditures by Type

        $114.00

        1. Table | CONSTRUCTION EXPENDITURES IN CHINA BY TYPE (billion 2011 yuan)

      3. 4.3 Construction Expenditures by Market

        $162.00

        1. Table | CONSTRUCTION EXPENDITURES IN CHINA BY MARKET (billion 2011 yuan)

      4. 4.4 International Environment

        $298.00

        1. 4.4.1 Construction Expenditures for Selected Countries

          $82.00

          1. Table | CONSTRUCTION EXPENDITURES FOR SELECTED COUNTRIES, 2002-2012 (billion US dollars)

        2. 4.4.2 Foreign Participation in China's Construction Industry

          $171.00

          1. Table | FOREIGN PARTICIPATION IN CHINA'S CONSTRUCTION INDUSTRY (billion 2011 yuan)

    5. 5 RESIDENTIAL BUILDING

      $1,907.00

      1. 5.1 General

        $324.00

        1. Table | RESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE (billion 2011 yuan)

      2. 5.2 New Housing Construction Expenditures

        $151.00

        1. Table | NEW HOUSING CONSTRUCTION EXPENDITURES IN CHINA (billion 2011 yuan)

      3. 5.3 New Housing Completions

        $426.00

        1. Table | NEW HOUSING COMPLETIONS IN CHINA

        2. 5.3.1 Single Family

          $165.00

        3. 5.3.2 Multifamily

          $129.00

      4. 5.4 Additions & Alterations

        $123.00

        1. Table | RESIDENTIAL BUILDING ADDITION & ALTERATION EXPENDITURES IN CHINA (billion 2011 yuan)

      5. 5.5 Maintenance & Repair

        $95.00

        1. Table | RESIDENTIAL BUILDING MAINTENANCE & REPAIR EXPENDITURES IN CHINA (billion 2011 yuan)

      6. 5.6 Housing Stock

        $528.00

        1. Table | HOUSING STOCK IN CHINA BY TYPE & OWNERSHIP (million units)

        2. 5.6.1 Single Family

          $129.00

        3. 5.6.2 Multifamily

          $149.00

        4. 5.6.3 Ownership

          $107.00

      7. 5.7 Living Space

        $259.00

        1. Table | AVERAGE LIVING SPACE IN CHINA

        2. 5.7.1 Urban

          $82.00

        3. 5.7.2 Rural

          $82.00

    6. 6 NONRESIDENTIAL BUILDING

      $913.00

      1. 6.1 General

        $254.00

        1. Table | NONRESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE (billion 2011 yuan)

      2. 6.2 New Construction

        $82.00

      3. 6.3 Additions & Alterations

        $82.00

      4. 6.4 Maintenance & Repairs

        $82.00

      5. 6.5 Structure Types

        $432.00

        1. Table | NONRESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE (billion 2011 yuan)

        2. 6.5.1 Industrial

          $131.00

        3. 6.5.2 Office & Commercial

          $82.00

        4. 6.5.3 Institutional

          $83.00

        5. 6.5.4 Other

          $82.00

      6. 6.6 Nonresidential Building Stock

        $82.00

        1. Table | NONRESIDENTIAL BUILDING STOCK IN CHINA (million square meters)

    7. 7 NONBUILDING

      $779.00

      1. 7.1 General

        $224.00

        1. Table | NONBUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE (billion 2011 yuan)

      2. 7.2 New Construction

        $109.00

      3. 7.3 Maintenance & Repairs

        $82.00

      4. 7.4 Structure Types

        $406.00

        1. Table | NONBUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE (billion 2011 yuan)

        2. 7.4.1 Roads & Other Transportation Infrastructure

          $125.00

          1. Table | PAVED ROADS IN CHINA BY REGION (thousand kilometers)

        3. 7.4.2 Utilities

          $117.00

        4. 7.4.3 Other

          $82.00

    8. 8 REGIONAL TRENDS

      $1,673.00

      1. 8.1 General

        $182.00

      2. 8.2 Regional Demographic & Economic Trends

        $254.00

        1. 8.2.1 Population Patterns

          $98.00

          1. Table | POPULATION OF CHINA BY REGION (million persons)

        2. 8.2.2 Economic Outlook

          $91.00

          1. Table | GROSS DOMESTIC PRODUCT OF CHINA BY REGION (billion 2011 yuan)

      3. 8.3 Regional Construction Expenditures

        $1,236.00

        1. Table | CONSTRUCTION EXPENDITURES IN CHINA BY REGION (billion 2011 yuan)

        2. 8.3.1 Central-North

          $226.00

          1. Table | CENTRAL-NORTH REGION OF CHINA: CONSTRUCTION EXPENDITURES (billion 2011 yuan)

        3. 8.3.2 Northeast

          $212.00

          1. Table | NORTHEAST REGION OF CHINA: CONSTRUCTION EXPENDITURES (billion 2011 yuan)

        4. 8.3.3 Central-East

          $179.00

          1. Table | CENTRAL-EAST REGION OF CHINA: CONSTRUCTION EXPENDITURES (billion 2011 yuan)

        5. 8.3.4 Central-South

          $160.00

          1. Table | CENTRAL-SOUTH REGION OF CHINA: CONSTRUCTION EXPENDITURES (billion 2011 yuan)

        6. 8.3.5 Southwest

          $185.00

          1. Table | SOUTHWEST REGION OF CHINA: CONSTRUCTION EXPENDITURES (billion 2011 yuan)

        7. 8.3.6 Northwest

          $177.00

          1. Table | NORTHWEST REGION OF CHINA: CONSTRUCTION EXPENDITURES (billion 2011 yuan)

    9. 9 INDUSTRY STRUCTURE

      $5,333.00

      1. 9.1 General

        $83.00

      2. 9.2 Industry Composition

        $220.00

        1. Table | REVENUE DATA: SELECTED CONSTRUCTION COMPANIES, 2012 (billion yuan)

      3. 9.3 Market Share

        $232.00

      4. 9.4 Marketing

        $115.00

      5. 9.5 Financial Issues & Requirements

        $401.00

        1. 9.5.1 Capital Expenditures

          $141.00

        2. 9.5.2 Project Funding

          $130.00

      6. 9.6 Company Profiles

        $4,837.00

        1. 9.6.1 Anhui Construction Engineering Group Company Limited

          $128.00

        2. 9.6.2 Balfour Beatty plc

          $125.00

        3. 9.6.3 Bechtel Group Incorporated

          $108.00

        4. 9.6.4 Beijing Construction Engineering Group Company Limited

          $164.00

        5. 9.6.5 Beijing Urban Construction Group Company Limited

          $144.00

        6. 9.6.6 Black & Veatch Holding Company

          $94.00

        7. 9.6.7 Bouygues SA

          $114.00

        8. 9.6.8 China Communications Construction Company Limited

          $273.00

        9. 9.6.9 China Gezhouba Group Company Limited

          $130.00

        10. 9.6.10 China National Chemical Engineering Company Limited

          $149.00

        11. 9.6.11 China National Machinery Industry Corporation

          $99.00

        12. 9.6.12 China Railway Construction Corporation Limited

          $194.00

        13. 9.6.13 China Railway Group Limited

          $218.00

        14. 9.6.14 China State Construction Engineering Corporation

          $183.00

        15. 9.6.15 Chiyoda Corporation

          $129.00

        16. 9.6.16 CTCI Corporation

          $216.00

        17. 9.6.17 Dongfang Electric Corporation

          $82.00

        18. 9.6.18 Fluor Corporation

          $125.00

        19. 9.6.19 Foster Wheeler AG

          $116.00

        20. 9.6.20 Fujian Construction Engineering Group Company

          $121.00

        21. 9.6.21 Guangdong Construction Engineering Group Corporation Limited

          $82.00

        22. 9.6.22 Guangsha Construction Group Company Limited

          $86.00

        23. 9.6.23 Hebei Construction Group Company Limited

          $127.00

        24. 9.6.24 HOCHTIEF AG

          $107.00

        25. 9.6.25 Hunan Construction Engineering Group Corporation

          $82.00

        26. 9.6.26 Jacobs Engineering Group Incorporated

          $98.00

        27. 9.6.27 Jiangsu Suzhong Construction Group Company Limited

          $83.00

        28. 9.6.28 Lend Lease Corporation Limited

          $120.00

        29. 9.6.29 Metallurgical Corporation of China Limited

          $213.00

        30. 9.6.30 NWS Holdings Limited

          $89.00

        31. 9.6.31 Qingjian Group Company Limited

          $82.00

        32. 9.6.32 Shaanxi Construction Engineering Group Corporation

          $120.00

        33. 9.6.33 Shanghai Construction Group General Company

          $106.00

        34. 9.6.34 Shanghai Urban Construction Group Corporation

          $82.00

        35. 9.6.35 Sichuan Huashi Group Corporation Limited

          $107.00

        36. 9.6.36 Sinohydro Group Limited

          $110.00

        37. 9.6.37 URS Corporation

          $117.00

        38. 9.6.38 Zhejiang Construction Investment Group Company Limited

          $102.00

      7. 9.7 Other Companies Mentioned in the Study

        $82.00

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