Construction Industry

During the 97th Euroconstruct conference the new forecasts for the European construction sectors.

In the third quarter of 2023, the construction sector grew by 13.3% on the same period in 2022, while forecasts for the whole 2023 reveal a robust 9.6% real-term expansion.

There are great expectations for Batimatec 2024 in Algiers in May, as the construction industry is benefiting from strong housing demand driven by population growth and rapid urbanisation.

Euroconstruct has revised down its 2023 estimates (-1.7%) and 2024 forecasts (-2.1%). The construction sector is expected to resume growth from 2025 onwards.

The sector is grappling with critical issues that will be overcome in 2024 with the economy's gradual recovery and the growth of investment.

The negative forecasts related to housing starts and home remodeling activity indicate a most probable slowdown of US ceramic tile market in 2023.

In 2022 the U.S. residential construction decreased for the first time since 2007. 1.56 million new houses were built last year, down 2,9% on 2021. The outlook is negative also for the year 2023.

In 2021 the U.S. residential construction reached its highest level since 2006, with 1.6 million new hoouses, up 15.6% on 2020. The outlook is positive also for the year 2022.

The construction sector is also driven by renovations, which have reached an all-time high

According to the latest Euroconstruct forecast, the construction volume in Europe is estimated to have slumped by 7.8% in 2020, but should grow by 4.1% this year, as well as by 3.4% and 2.4% in 2022 and 2023.

The Limena-based company has been tasked with renovating the roof tile factory in Leskovac with the aim of improving product quality and automation

According to an ITA (Italian Trade Agency) report published in November, the Moroccan construction industry has generated a turnover of more than 500 million euros and an added value of 3.2 billion euros over the last five years, corresponding to average annual growth of 5%. Following a small contraction in 2013, the industry closed 2014 with positive figures.

In 2014 the country saw a recovery in private consumption (+4.9% in the third quarter of 2014) and in public spending (+8.8%), as well as fresh growth in exports (+15%), while GDP marked up 6.8% growth in the third quarter compared to the 2.1% average for 2013.

In spite of a relatively peaceful period of transition following the Arab Spring, Tunisia's economic growth has slowed considerably. Compared to an average annual GDP growth of 5% in the pre-revolution period, 2014 closed with a (nonetheless quite respectable) +2.7%.

Algeria is enjoying a period of relative stability. According to World Bank estimates, real GDP grew by 3% in 2014 compared to 2.8% in 2013, while further 3.3% growth is expected this year followed by 3.5% per year in 2016-2017.

The grave security situation in Libya is hindering the launch of projects and investment strategies, which are essential in a country that needs to build or rebuild much of its building stock and infrastructure in virtually every sector.

The economies of the MENA region (Middle East and North Africa) are estimated to grow 2,5% in 2015, following the 1.2% increase of 2014.

The President of the European tile and brick manufacturers' federation told us how is the sector confronting the crisis and what opportunities are there for the future.