international
construction
november 2013
NEWS REPORT
12
International growth
A steep rise in North America and Asia saw
the value of overseas work carried out by
European contractors hit a new high last
year.
Chris Sleight
reports.
International
E
uropean contractors achieved revenues of € 167.6
billion (US$ 229 billion) outside their domestic markets
last year, according to a survey of 169 companies by
European International Contractors (EIC), a trade association
representing internationally active European construction
companies. The figure was a +7.2% increase on the value of
work in 2011 – € 156.4 billion (US$ 214 billion).
The biggest market for these companies is other European
countries, with € 75 billion (US$ 103 billion) of work
carried out last year. However, this was only a +1.2% increase
on the previous year. The rise in overall revenues for European
contractors last year came from more robust increases in
Asia and North America, helped by gains in other territories.
The only region where revenues fell in 2012 was the
Middle East.
In percentage terms, the steepest growth was in North America,
with the value of work done rising +26.8% to € 26 billion (US$
35 billion). However, the markets of Asia & Oceania were more
significant, and their +12.6% rise took the value of work done
to € 31 billion (US$ 42 billion).
Elsewhere, turnover in Latin America was up +14.4% to € 11
billion (US$15 billion), while there was a rise of +8.4% in Africa
to € 15 billion (US$ 20 billion). Meanwhile in the Middle East,
the value of work fell -9.7% to € 10 billion (US$ 14 billion).
The decline in revenues from the Middle East and the growth
in Latin America last year meant it was the first time in a decade
that the Latin American market was worth more to European
contractors than the value of work done in the Middle East.
Meanwhile, after an improvement in 2011, the proportion
of work carried out in other European markets by foregin
European contractors was at a record low. Although the value
of € 75 billion (US$ 103 billion) was the highest ever, it
represented just under 45% of overseas revenues for European
contractors. Last year that figure stood at 47.5% and at the
Growth trends in new contracts and revenues
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
2003
New contracts
Revenues
2004 2005 2006 2007 2008 2009 2010 2011 2012
The rise in overall revenues for
European contractors last year
came from more robust increases
in Asia and North America, helped
by gains in other territories.
Value of new contracts and revenues -
€
billion
180
160
140
120
100
80
60
40
20
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
New contracts
Revenues
168
179
169
171
140
143
147
163
146
121
106
132
106
98
80
84
71
73
79
75
156
141
