1 Table Of Contents 2
1.1 List Of Tables 4
1.2 List Of Figures 7
2 Introduction 9
2.1 What is This Report About? 9
2.2 Methodology 9
2.3 Profile Of Survey Respondents 10
3 Executive Summary 14
3.1 The Construction Industry is Optimistic About the Early Recovery of the Global Economy 14
3.2 Uncertainty Prevails in the Construction Industry in Terms of Revenue Growth for the Next 12 Months 14
3.3 Asia Pacific and Middle East Companies Expected to Witness Highest Increase in Procurement Budgets and European Companies to Witness the Least 15
3.4 Both Short Term and Long Term Challenges Daunt Construction Industry Players 15
3.5 Suppliers Should Increase Their Understanding and Align Their Capabilities Better With Buyer Needs to Gain Business Amidst Recession 16
4 Economic Outlook & Confidence 17
4.1 Global Economy Recovery Expectations 17
4.2 Global Construction Growth Forecast For 2010 22
4.3 Revenue Growth Expectations 23
5 Construction Industry Investment Outlook 28
5.1 Construction Growth Opportunities by Region 28
5.2 Construction Growth Opportunities by Market Sector 38
5.3 M&A Activity Predictions 45
5.4 Supplier’s Industry Outlook 49
6 Recession: Threats and Opportunities for the Construction Industry 53
6.1 Leading Business Concerns Due to Recession 53
6.2 Key Actions to Overcome Business Threats 57
6.3 Key Actions to Maintain and Win Buyer Business 61
6.4 Leading Recession-Related Business Opportunities 69
7 Construction Industry Buyer Spend Activity 73
7.1 Annual Procurement Budgets 73
7.2 Expected Change in Procurement Spend 77
7.3 Expected Change in Spend by Product and Service Category 81
8 Procurement Behaviors & Strategies & the Impact of Recession 89
8.1 Critical Success Factors for Supplier Selection 89
8.2 Current Effects of Recession on Procurement Objectives 93
8.3 Expected Future Effects of Recession on Procurement Objectives 95
8.4 The Effects of Recession on Procurement Strategy 99
9 Appendix 106
9.1 Full Survey Results 106
9.2 Methodology 113
9.3 Contact Us 114
9.4 About Global Markets Direct 114
9.5 Disclaimer 114
1.1 List Of Tables
Table 1: Count Of Global Construction Industry Survey Respondents By Company Type (Number Of Respondents), 2009 Industry Survey 10
Table 2: Buyer Respondents By Job Role (% Buyer Respondents), Global Construction Industry, 2009 10
Table 3: Buyer Respondents By Organization’s Global Turnover (% Buyer Respondents), Global Construction Industry, 2009 11
Table 4: Buyer Respondents By Organization’s Total Employee Size (% Buyer Respondents), Global Construction Industry, 2009 11
Table 5: Supplier Respondents By Job Role (% Supplier Respondents), Global Construction Industry, 2009 12
Table 6: Supplier Respondents By Organization’s Global Turnover (% Supplier Respondents), Global Construction Industry, 2009 12
Table 7: Supplier Respondents By Organization's Total Employee Size (% Supplier Respondents), Global Construction Industry, 2009 13
Table 8: Global Construction Industry Expectations Of Global Economy Recovery Timings By Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 19
Table 9: Global Construction Industry Expectations Of Global Economy Recovery Timings By Company Type: Construction Contractors / Project Sponsors Or Developers, Construction Equipment, Materials & Products Suppliers / Distributors, Other Construction Industry Suppliers (% All Respondents), 2009 20
Table 10: Global Construction Industry Forecast Of Global Construction Economy Growth By Company Type: Construction Contractor / Project Sponsor Or Developer Vs. Construction Equipment, Materials & Products Supplier / Distributor Vs. Other Construction Industry Supplier Vs. Average Expectations (% All Respondents), 2009 22
Table 11: Company Revenue Growth Optimism By Global Construction Industry Company Type: Buyers (Construction Contractors / Project Sponsors Or Developers) Vs. Suppliers (Construction Equipment, Materials & Products Suppliers / Distributors, Other Construction Industry Suppliers) (% All Respondents), 2009 25
Table 12: Company Revenue Growth Optimism In The Global Construction Industry By Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 27
Table 13: Construction Contractor / Project Sponsor Or Developer Industry: Market Predictions Of The Fastest And Slowest Growing Regions For The Construction Industry (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 31
Table 14: Construction Contractor / Project Sponsor Or Developer Industry: Market Predictions Of The Fastest And Slowest Growing Regions For The Construction Industry (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 34
Table 15: Other Construction Industry Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Regions For The Construction Industry (% Other Construction Industry Supplier Respondents), 2009 37
Table 16: Construction Contractor / Project Sponsor Or Developer Industry: Market Predictions Of The Fastest And Slowest Growing Market Sectors For The Construction Industry (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 40
Table 17: Construction Equipment, Materials & Products Supplier / Distributor Industry: Market Predictions Of The Fastest And Slowest Growing Market Sectors For The Construction Industry (% Construction Equipment, Materials & Products Supplier / Distributor Respondents), 2009 42
Table 18: Other Construction Industry Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Market Sectors For The Construction Industry (% Other Construction Industry Supplier Respondents), 2009 44
Table 19: Key Growth Areas In The Global Construction Industry (Analysis Of Supplier Respondents), 2009 50
Table 20: Key Growth Areas In The Global Construction Industry (Analysis Of Senior Level Supplier Respondents), 2009 51
Table 21: Key Declining Areas In The Global Construction Industry (Analysis Of Supplier Respondents), 2009 51
Table 22: Key Declining Areas In The Global Construction Industry (Analysis Of Senior Level Respondents), 2009 52
Table 23: Construction Contractor / Project Sponsor Or Developer Vs. Construction Equipment, Materials & Products Supplier / Distributor Vs. Other Construction Industry Supplier: Leading Business Concerns For The Period 2009-2010 Among Global Construction Industry Buyers And Suppliers (% All Respondents), 2009 56
Table 24: Leading Business Concerns For The Period 2009-2010 Among Global Construction Industry Buyers And Suppliers By Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 57
Table 25: Most Important Actions Being Implemented To Overcome Leading Business Concerns In 2009-2010 In The Global Construction Industry (Analysis Of All Respondents), 2009 58
Table 26: Most Important Actions Being Implemented To Overcome Leading Business Concerns In 2009- 2010 In The Global Construction Industry- Senior Level Responses Only (Analysis Of Senior Level Respondents), 2009 59
Table 27: Most Important Actions Being Implemented By Construction Equipment, Materials & Product Suppliers / Distributors, Other Construction Industry Suppliers To Overcome Leading Business Concerns In 2009- 2010 In The Global Construction Industry (Analysis Of Construction Equipment, Materials & Product Suppliers / Distributors, Other Construction Industry Suppliers Respondents), 2009 60
Table 28: Most Important Actions Being Implemented By Construction Contractors / Project Sponsors Or Developers To Overcome Leading Business Concerns In 2009- 2010 In The Global Construction Industry (Analysis Of Construction Contractors / Project Sponsors Or Developers Respondents), 2009 61
Table 29: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Construction Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 64
Table 30: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Construction Industry: Analysis Of Buyer Respondents By Company Turnover (% Buyer Respondents), 2009 65
Table 31: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Construction Industry: Analysis Of All Buyer Respondents By Procurement Budget (% Buyer Respondents), 2009 66
Table 32: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Construction Industry: Analysis Of All Buyer Respondents By Region (% Buyer Respondents), 2009 68
Table 33: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Construction Industry: Analysis Of All Buyer Respondents By Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009 69
Table 34: Leading Business Opportunities During The Recession In The Global Construction Industry (Analysis Of All Respondents), 2009 70
Table 35: Leading Business Opportunities During The Recession In The Global Construction Industry – Senior Level Responses Only (Analysis Of Senior Level Respondents), 2009 71
Table 36: Leading Business Opportunities For Construction Contractors / Project Sponsors Or Developers During The Recession In The Global Construction Industry (Analysis Of Buyer Respondents), 2009 72
Table 37: Leading Business Opportunities For Construction Equipment, Materials & Product Suppliers / Distributors, Other Construction Industry Suppliers During The Recession In The Global Construction Industry (Analysis Of Supplier Respondents), 2009 72
Table 38: Annual Procurement Budgets In US$ In The Global Construction Industry: Construction Contractor / Project Sponsor Or Developer (% All Buyer Respondents), 2009 73
Table 39: Annual Procurement Budgets In US$ In The Global Construction Industry By Region (% All Buyer Respondents), 2009 76
Table 40: Expected Change In Spend On Products & Services In The Global Construction Industry Over The Next 12 Months: Construction Contractor / Project Sponsor Or Developer (% All Buyer Respondents), 2009 77
Table 41: Future Change In Spend In The Global Construction Industry By Product And Service Category: Construction Contractor / Project Sponsor Or Developer - Expected Increase Or Decrease Over The Next 12 Months (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 83
Table 42: Critical Success Factors For Selecting A Construction Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 93
Table 43: Current Effects Of Recession On Procurement Objectives & Priorities In The Global Construction Industry By Company Turnover (% All Buyer Respondents), 2009 95
Table 44: Expected Changes In Procurement Strategy In The Global Construction Industry To Drive Value Across The Business Due To Recession: All Buyers By Company Turnover (% All Buyer Respondents), 2009 101
Table 45: Expected Changes In Procurement Strategy In The Global Construction Industry To Drive Value Across The Business Due To Recession: All Buyers By Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009 102
Table 46: Expected Changes In Procurement Strategy In The Global Construction Industry To Drive Value Across The Business Due To Recession: All Buyers By Region (% All Buyer Respondents), 2009 104
Table 47: Construction Contractor / Project Sponsor Or Developer Attitudes & Approaches To Existing Procurement Practices: Level Of Agreement To The Following 5 Statements (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 105
Table 48: Full Survey Results-Closed Questions 106
1.2 List Of Figures
Figure 1: Leading Business Concerns For The Period 2009-2010 Among Global Construction Industry Buyers And Suppliers (% All Respondents), 2009 16
Figure 2: Global Construction Industry Expectations Of Global Economy Recovery Timings (% All Respondents), 2009 18
Figure 3: Global Construction Industry Expectations Of Global Economy Recovery Timings By Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 19
Figure 4: Global Construction Industry Expectations Of Global Economy Recovery Timings By Company Type: Construction Contractors / Project Sponsors Or Developers, Construction Equipment, Materials & Products Suppliers / Distributors, Other Construction Industry Suppliers (% All Respondents), 2009 21
Figure 5: Global Construction Industry Forecast Of Global Construction Economy Growth By Company Type: Construction Contractor / Project Sponsor Or Developer Vs. Construction Equipment, Materials & Products Supplier / Distributor Vs. Other Construction Industry Supplier Vs. Average Expectations (% All Respondents), 2009 23
Figure 6: Company Revenue Growth Optimism In The Global Construction Industry (% All Respondents), 2009 24
Figure 7: Company Revenue Growth Optimism By Global Construction Industry Company Type: Buyers (Construction Contractors / Project Sponsors Or Developers) Vs. Suppliers (Construction Equipment, Materials & Products Suppliers / Distributors, Other Construction Industry Suppliers) (% All Respondents), 2009 25
Figure 8: Company Revenue Growth Optimism In The Global Construction Industry By Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 27
Figure 9: Overall Predictions Of The Fastest And Slowest Growing Regions For The Construction Industry (% All Respondents), 2009 29
Figure 10: Construction Contractor / Project Sponsor Or Developer Industry: Market Predictions Of The Fastest And Slowest Growing Regions For The Construction Industry (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 30
Figure 11: Construction Contractor / Project Sponsor Or Developer Industry: Market Predictions Of The Fastest And Slowest Growing Regions For The Construction Industry (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 33
Figure 12: Other Construction Industry Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Regions For The Construction Industry (% Other Construction Industry Supplier Respondents), 2009 36
Figure 13: Overall Predictions Of The Fastest And Slowest Growing Market Sectors For The Construction Industry (% All Respondents), 2009 38
Figure 14: Construction Contractor / Project Sponsor Or Developer Industry: Market Predictions Of The Fastest And Slowest Growing Market Sectors For The Construction Industry (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 39
Figure 15: Construction Equipment, Materials & Products Supplier / Distributor Industry: Market Predictions Of The Fastest And Slowest Growing Market Sectors For The Construction Industry (% Construction Equipment, Materials & Products Supplier / Distributor Respondents), 2009 41
Figure 16: Other Construction Industry Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Market Sectors For The Construction Industry (% Other Construction Industry Supplier Respondents), 2009 43
Figure 17: Merger & Acquisition Activity Expectations Over The Next 12 Months In The Global Construction Contractor / Project Sponsor Or Developer Industry (% Construction Contractor / Project Sponsor Or Developer Industry Respondents), 2009 46
Figure 18: Merger & Acquisition Activity Expectations Over The Next 12 Months In The Global Construction Equipment, Materials & Products Supplier / Distributor Industry (% Construction Equipment, Materials & Products Supplier / Distributor Industry Respondents), 2009 48
Figure 19: Merger & Acquisition Activity Expectations Over The Next 12 Months In The Global Other Construction Industry Supplier Industry (% Other Construction Industry Supplier Industry Respondents), 2009 49
Figure 20: Leading Business Concerns For The Period 2009-2010 Among Global Construction Industry Buyers And Suppliers (% All Respondents), 2009 54
Figure 21: Construction Contractor / Project Sponsor Or Developer Vs. Construction Equipment, Materials & Products Supplier / Distributor Vs. Other Construction Industry Supplier: Leading Business Concerns For The Period 2009-2010 Among Global Construction Industry Buyers And Suppliers (% All Respondents), 2009 55
Figure 22: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Construction Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 63
Figure 23: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Construction Industry: Analysis Of All Buyer Respondents By Region (% Buyer Respondents), 2009 67
Figure 24: Annual Procurement Budgets In US$ In The Global Construction Industry: Construction Contractor / Project Sponsor Or Developer (% All Buyer Respondents), 2009 74
Figure 25: Annual Procurement Budgets In US$ In The Global Construction Industry By Company Turnover (% All Buyer Respondents), 2009 75
Figure 26: Annual Procurement Budgets In US$ In The Global Construction Industry By Region (% All Buyer Respondents), 2009 76
Figure 27: Expected Change In Spend On Products & Services In The Global Construction Industry Over The Next 12 Months: Construction Contractor / Project Sponsor Or Developer (% All Buyer Respondents), 2009 78
Figure 28: Expected Change In Spend On Products & Services In The Global Construction Industry Over The Next 12 Months By Company Turnover (% All Buyer Respondents), 2009 79
Figure 29: Expected Change In Spend On Products & Services In The Global Construction Industry Over The Next 12 Months By Region (% All Buyer Respondents), 2009 80
Figure 30: Future Change In Spend In The Global Construction Industry By Product And Service Category: Construction Contractor / Project Sponsor Or Developer - Expected Increase Or Decrease Over The Next 12 Months (% Construction Contractor / Project Sponsor Or Developer Respondents), 2009 82
Figure 31: Future Change In Spend In The Global Construction Industry By Product And Service Category: Expected Increase Over The Next 12 Months Construction Contractor / Project Sponsor Or Developer (% All Buyer Respondents), 2009 85
Figure 32: Future Change In Spend In The Global Construction Industry By Product And Service Category: Expected Increase Over The Next 12 Months Among All Buyers By Company Turnover (% All Buyer Respondents), 2009 87
Figure 33: Future Change In Spend In The Global Construction Industry By Product And Service Category: Expected Increase Over The Next 12 Months Among All Buyers By Region (% All Buyer Respondents), 2009 88
Figure 34: Critical Success Factors For Selecting A Construction Industry Supplier: Difference In Views, Buyers Vs. Suppliers (Net Difference In Ranking), Global, 2009 91
Figure 35: Critical Success Factors For Selecting A Construction Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 92
Figure 36: Current Effects Of Recession On Procurement Objectives & Priorities In The Global Construction Industry (% All Buyer Respondents), 2009 94
Figure 37: Likelihood Of Future Change In Procurement Objectives In The Global Construction Industry (% All Buyer Respondents), 2009 96
Figure 38: Likelihood Of Future Change On Procurement Objectives In The Global Construction Industry By Company Turnover (% All Buyer Respondents), 2009 97
Figure 39: Expected Future Effects Of Recession On Procurement Objectives & Priorities In The Global Construction Industry (% All Buyer Respondents), 2009 98
Figure 40: Expected Future Effects Of Recession On Procurement Objectives & Priorities In The Global Construction Industry By Company Turnover (% All Buyer Respondents), 2009 99
Figure 41: Expected Changes In Procurement Strategy In The Global Construction Industry To Drive Value Across The Business Due To Recession (% All Buyer Respondents), 2009 100
Figure 42: Expected Changes In Procurement Strategy In The Global Construction Industry To Drive Value Across The Business Due To Recession: All Buyers By Region (% All Buyer Respondents), 2009 103