Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.
Market performance at a glance
- The general outlook for the Japanese construction sector is positive as the industry benefits from an increase in public works and credit easing measures by the government.
- Construction insolvencies decreased 18% year-on-year in 2014 are expected to level off in 2015.
- There was no increase in payment delays in 2014, and we expect no increase in 2015.
- That said, construction businesses face some difficulties due to a lack of workforce, leading to higher labour costs.
- Another issue is rising material prices due to the depreciation of the Yen.
- Smaller construction businesses with weak financials could face some difficulties in 2015.