Industry trends over the last 75 years suggest the
global construction industry is now back on the path to growth, according to
Sandvik Mining and Construction president Thomas Schulz.
“By tracking GDP since the end of the Second World War
it can be seen that if global GDP exceeds 2.75% then there is growth in the
construction sector,” said Schulz.
“In 2009 global GDP was negative for the first time in
the last 75 years at -0.79% but this year it is forecast to be 4.1% and 4.2% in
2012. This is good for the construction industry.
“Whether this GDP growth signals the start of a new
boom period has yet to be seen and will vary by region but there is a definite
return to growth – the US market is rebounding and there are areas of
excellence in Europe too,” he said. “Looking at the market, it is clear that it
has always been a cyclical business and there has been a traceable
eight-to-10-year cycle since the end of the Second World War.
“Normally there will be a boom over a six-year period
with a decline over a two-to-three-year timespan and I am optimistic that we reached the bottom of the
market last year.”
