Chinas Trillion-Dollar Construction Industry Boosted by Increased Government Housing

San Francisco, CA (PRWEB) September 08, 2012

The construction sector accounted for a quarter of China’s GDP in 2011, according to Chinas National Bureau of Statistics, with the Building Construction industry making up the largest share. Over the five years through 2012, revenue for the industry has been growing at an average annualized rate of 22.1% to $ 1.24 trillion. The opening of Chinas financial sector in the early 2000s, which provided greater access to bank loans for apartment purchases, greatly stimulated demand for residential building construction. This, along with rapid growth in government activities and downstream commercial industries, such as retailing, wholesaling, and manufacturing, has contributed to the industrys strong performance, says IBISWorld.

The Building Construction industry in China is estimated to generate almost a quarter of total international construction trade value. Several large firms, including China State Construction Engineering Corporation (CSCEC) and Shanghai Construction Group, are top-ranked global contractors. Most of the major players, such as CSCEC, Shanghai Urban Construction (Group) Corporation, and Zhejiang Construction Investment Group, also have operations in related industries, such as civil engineering, real estate development, and construction machinery manufacturing. By operating across different sectors, they decrease costs and maintain stable supply sources. However, the majority of construction enterprises are small with limited business scope. Market share concentration is low, and the industry is fragmented across regional markets.

Rapidly increasing housing prices in major cities resulted in the State Council and several local governments issuing a series of measures to curb speculative housing demand and prevent excessive price growth. These policies are expected to cause declines in sales volume and average prices of commercial buildings and will discourage real estate investment and new house starts, according to IBISWorld. However, an increase in the number of government-mandated indemnificatory (i.e. low-income) houses is raising demand for building construction services and offsetting the slowed growth in the commercial and residential real estate markets.

For more information, visit IBISWorlds Building Construction in China industry report page.

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IBISWorld industry Report Key Topics

Businesses in the Building Construction industry in China construct residential buildings, commercial buildings, hotels, office buildings, schools, hospitals, airport terminals, harbors, railway stations and factories.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalization & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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