Phl seen with significant future growth in construction

SINGAPORE — While the construction industry has tempered in some parts of Asia, construction spending growth in Indonesia and China will remain the strongest in the region but special attention should be made of the growth potential in the Philippines and Myanmar, according to the latest Asia Construction Outlook report published by AECOM and its Davis Langdon KPK group.

Asia Construction Outlook 2014 presents an overview of the construction market in Asia at the beginning of 2014. It reviews industry activity levels in 2013 and provides near- and longer-term forecasts for construction activity by region, country and city. The findings are based on an analysis of sector statistics combined with the results of market sentiment surveys undertaken by 68 AECOM construction experts across nine countries.

The analysis by AECOM and Davis Langdon KPK highlights the following key trends:

• The residential sector in Asia appears to be gathering some momentum.

• Respondents are slightly less optimistic regarding the future prospects for construction in Asia.

• Indonesia is the top-rated country in terms of potential construction spending growth in the medium term.

• The Philippines (near-term) and Myanmar (medium-term) are identified as countries with potential for significant future growth in construction.

• Upcoming parliamentary elections in Indonesia and India are expected to have a negative impact on near-term construction prospects in both countries.

• A lack of investor confidence in Thailand is expected to affect construction spending in the near term.

“There is an increasing downside risk shown in our forecasts based on the level of credit availability in the region,” said Dato’ Sri Kandan, chairman, Davis Langdon KPK. It is believed that integrated planning, design and engineering solutions will be the key to advance the value of the project. As market pressures mount on projects’ financial viability due to higher costs and lower margins, innovation in procurement such as the Integrated Project Delivery process should be considered. “This, coupled with the principles of Lean, such as improving quality and productivity, would seek to deliver maximum value to the owner, reduce waste and maximize efficiency through all phases of design and construction.”

Published twice a year, Asia Construction Outlook provides a regular review of, and forecast for, the construction markets in Asia.

AECOM is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves.

AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural, and social environments.

A Fortune 500 company, AECOM serves clients in more than 150 countries and had revenue of $8.1 billion during the 12 months ended Dec. 31, 2013.  More information on AECOM and its services can be found at www.aecom.com