economic outlook february 2016 - rakennusteollisuus rt · economic outlook february 2016...

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

16.2.2016 Confederation of Finnish Construction Industries RT 2

16.2.2016 3 Confederation of Finnish Construction Industries RT

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


Source: RT

Distribution of Civil Engineering


Connecting com-

munities 32 %

Construc-tion of

community 30 %

Work done on building

site 38 %

Source: Statistics Finland

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


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


Other buildings 1 100 200 200 300 300

Total 31 000 27 900 26 300 28 500 29 000


ARA housing 6 200 6 400 7 400 8 600 8 000 Source: Statistics Finland, ARA, RT

28 16.2.2016 Confederation of Finnish Construction Industries RT

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

economic outlook february 2016 - rakennusteollisuus rt · economic outlook february 2016...

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