Industry Analysis & Industry Trends
Following strong industry revenue growth from 2005 to 2008, largely due to strong upstream building construction growth, the Building Completion industry in China realized only slight growth of 0.7% in 2009 as higher property prices stifled volume growth during the year. Despite this, industry revenue increased by 8.5% in 2010 due to the prosperous domestic real estate market. Industry revenue is forecast to increase at an annualized rate of 9.2% in the five years to 2011, amounting to $348.2 billion by 2011 (constant 2011 prices).
New public building decoration projects decreased in 2009 as some clients delayed their building and decoration plans due to the global recession.... purchase to read more
Industry Report - Industry Investment Chapter
Using wages and management expenses as an indicator of labor, and depreciation as a proxy for capital, the labor-to-capital ratio for this industry in 2011 is estimated to be 8.4:1, indicating the industry has a medium capital intensity level.
Companies in the industry have to purchase items needed before the project construction begins, receiving revenue upon the completion of the project. As a result, the industry's operations require significant investment in decoration material purchases, particularly for companies undertaking large-scale public building projects.
A skilled workforce is crucial for companies in this industry, as most tasks during the building completion and decoration process require experienced workers... purchase to read more