Strategy Management Consultancy. Europe. Regional Analysis Linesight Knowledge Center. linesight.com
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1 Strategy Management Consultancy Europe Regional Analysis 2016 knowledge center Linesight Knowledge Center linesight.com
2 Contents Europe Market Review 3 Index of Production in the European Construction... 4 Top 15 European Contractors 5 Top 15 European Design Firms 5 Construction Cost New Residential Building Index 6 European Union Inflation Rates 7 EU Labour Costs in Construction 7 EU Procurement Timescales EU Procurement Thresholds Currency Movements 9 Contributors to the Europe section of Knowledge Centre 2016: Michael Bonner, Helen Pender, Terry Woulfe-Flanagan Linesight Europe
3 Europe Market Review It is expected to continue to steadily grow in the coming year averaging at 3%. The European construction industry has maintained its growth as per our forecast in It is expected to continue to steadily grow in the coming year averaging at 3%. The construction industries of Central and Eastern Europe continue to grow with Poland, Hungary and Czech Republic increasing by 4% as investments are made in transportation and energy production. The railway construction market was set to top 1.5 billion in Poland, the strongest player, accounts for 60% of construction output in the region. In Western Europe, the German construction industry, the largest of all the European countries, is set to experience 1.2% steady growth. Ireland has made a significant economic recovery. Output of the Irish construction industry in 2015 was approximately 12.5 billion which represented an increase of 14% over the previous year. We expect the recovery in the industry to accelerate in 2016 and are predicting an output level of just over 15 billion, representing an annual increase of 21%. Unfortunately the same cannot be said for Southern Europe. Spain, Italy and Portugal are not expected to see growth in the construction sector in the short term, however are predicted to see an increase in the longer term. The residential sector in Europe has been and will continue to be influenced (depending on political strategy) by outside factors such as the influx of migrants coming into countries such as Germany, the Netherlands, Sweden, Norway, Denmark and Finland. Overall the trend is a positive one and the construction industry future looks bright in the short to medium term. 3 Europe
4 Index of Production in the European Construction Sector (Seasonally and working day adjusted) Buildings Source Eurostat Construction Civil engineering works 4 Europe
5 Top 15 European Contractors Based on Total Revenue Rank 2015 Rank 2014 Firm Revenue bn. 1 1 VINCI, France ACS, Spain BOUYGUES, France HOCHTIEF, Germany SKANSKA, Sweden STRABAG, Austria EIFFAGE, France TECHNIP, France SAIPEM, Italy FERROVIAL, Spain ROYAL BAM GROUP, The Netherlands OZTURK HOLDING CO., Turkey ABEINSA, Spain OHL, Spain PETROFAC LTD, U.K ranking is based on 2014 construction revenue Source Engineering News Record Top 15 European Design Firms Based on Total Revenue Rank 2015 Rank 2014 Type of firm Firm Revenue bn. 1 1 EC AMEC, U.K E ARCADIS, The Netherlands GE FUGRO, The Netherlands EA ATKINS, U.K E MOTT MACDONALD GROUP, U.K E ARUP, U.K EC TECHNIP, France E RAMBOLL GROUP, Denmark EC TECNICAS REUNIDAS, Spain E AF, Sweden E SWECO, Sweden E EGIS, France E ROYAL HASKONINGDHV, Netherlands E COWI, Denmark E TRACTEBEL ENGINEERING, Belgium ranking is based on revenue for design services performed in Key to Type of Firm A architect; E engineer; EC engineer-contractor Source Engineering News Record 5 Europe
6 Construction Cost New Residential Building Index Index (2005=100) Q1 Q3 Q1 Q3 Q1 Q3 Belgium N/A Bulgaria Czech Republic Denmark Germany Estonia Ireland N/A Greece Spain France Italy Cyprus N/A Latvia Lithuania Luxembourg N/A Hungary Netherlands Austria Poland N/A Portugal Romania Slovenia Slovakia N/A Finland Sweden United Kingdom N/A Turkey European Union Average N/A = not available Source Eurostat 6 Europe
7 European Union Inflation Rates Annual Change on Consumer Price Index Jan 13 Jul 13 Jan 13 Jul 14 Jan 15 Jul 15 Source Eurostat EU Labour Costs in Construction EU-28 EA18 Denmark Belgium Sweden Luxembourg France Netherlands Finland Austria Germany Ireland Italy UK Spain Cyprus Slovenia Greece Portugal Malta Estonia Slovakia Czech Republic Croatia Poland Hungary Latvia Lithuania Romania Bulgaria Wages & Salaries Other Costs Source Eurostat 7 Europe
8 EU Procurement Timescales 2016 Prior Indicative Notice (PIN) Publish at least 52 days prior to date contract notice is dispatched to avail of reduced time limits (max. 12 mths) Open Procedures Time Limit for Receipt of Tender If no PIN: not less than 52 days If PIN: General rule minimum time 36 days and in any case not less than 22 days from date contract notice is dispatched Restricted Procedure Time Limit for Receipt of Expressions of Interest Not less than 37 days from date contract notice is dispatched Time Limit for Receipt of Tenders If no PIN: Not less than 40 days If PIN: General rule minimum time 36 days. This may be reduced in certain cases but in no circumstances less than 22 days from the date invitation to tender is dispatched. Accelerated Restricted Procedure Time Limit for Receipt of Expressions of Interest Not less than 15 days from date contract notice is dispatched Time Limit for Receipt of Tenders Not less than 10 days from date invitation to tender is dispatched Negotiated Procedure with Prior Publication of a Contract Notice Time Limit for Receipt of Application Not less than 37 days from date contract notice is dispatched Negotiated Accelerated Procedure with Prior Publication of a Contract Notice Time Limit for Receipt of Application Not less than 15 days from date contract notice is dispatched Contract Award Notice Time Limit for Receipt of Issue 48 days from award of contract Source 8 Europe
9 EU Procurement Thresholds 2016 Works Contract Notice 5,225,000 Threshold applies to Government Departments and Offices, Local and Regional Authorities and other public bodies. Supplies and Services Contract Notice 135,000 Threshold applies to Government Departments and Offices Contract Notice 209,000 Threshold applies to Local and Regional Authorities and public bodies outside Utilities Works Contracts / Prior Indicative Notice 5,225,000 Supplies and Services 418,000 For entities in Utilities sectors covered by GPA For entities in Utilities sectors covered by GPA Source Currency Movements Euro vs. Various European Currencies Year Bulgarian lev BGN Croatian kuna HRK Czech koruna CZK Danish krone DKK Hungarian forint HUF Polish zloty PLN Romanian leu RON Russian rouble RUB Swedish krona SEK Turkish lira TRY * *Note Based on January exchange rates Source European Central Bank 9 Europe
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