Global Powers of Construction 2019
Deloitte has presented the third edition of its annual Global Powers of Construction study (GPoC) that ranks the top 100 global construction companies based on sales, and the top 30 companies based on market capitalisation. The report further analyses the current macroeconomic outlook of the construction sector and forecasts its growth across major markets as well as key financial indicators of the leading players.
COVID-19 pandemic increases uncertainty levels for the FUTURE
In its study, Deloitte finds that the global economic prospects became uncertain as a result of the outbreak of the COVID-19 pandemic. The global economy is projected to contract by 3% in 2020 and rebound by 5.8% the year after, assuming the pandemic fades in the second half of 2020. Nevertheless, the construction industry remains resilient, as it is one of the few industries that can still operate and is expected to grow by 0.5% in 2020.
In 2019, the aggregate sales and market capitalisation of the Top 100 GPoC rose by 5% and amounted to USD 1.39 trillion. The analysis was made on base of the main financial indicators reported on the major players of the industry: market position and performance in terms of internationalisation, market capitalisation, revenue, diversification, indebtedness, profitability and other financial ratios. However, as of end of March 2020 the market value of our GPoC had generally shrank because of the unprecedent economic conditions created by the COVID-19 pandemic.
STRONG EUROPEAN PRESENCE IN INTERNATIONAL SALES
As regards international market presence, the report concludes that, in 2019, the GPoC obtained around 19% of total revenue outside their respective domestic markets. By geographical area, the most internationalised companies are the European groups (55%), followed by the US-based GPoC (20%). South Korean companies, which in recent years have focused on exploring new markets, including North America and Europe, have increased their international presence. Chinese state-owned construction enterprises, although having a strong international footprint, still depend primarily on their home market.
The Deloitte GPoC 2019 report can be downloaded here.