Boston, MA -- (ReleaseWire) -- 04/24/2014 -- The Dutch construction industry recorded a compound annual growth rate (CAGR) of -4.10% during the review period (2009-2013). The country's economic growth was severely affected by the European financial crisis, resulting in the accumulation of national debt which contributed to 75% of GDP in 2013. In a bid to reduce the debt, the government implemented various austerity measures such as a reduction in public spending. The construction industry's growth rate is expected to recover over the forecast period, as a result of economic recovery and government efforts to retain the country's attractiveness as a business center. The industry's output is expected to increase at a CAGR of 2.02% over the forecast period (2014-2018).
- The Dutch construction industry struggled following the financial crisis in 2008. In 2013, the construction production index, a measure of general construction output, contracted by 4.6%, following a decline of 8.0% in 2012. New building permit approvals also fell following the crisis, declining to its lowest level in nearly two decades in the fourth quarter of 2013. With permits providing an indicator of activity in the coming quarters, the recent slump during 2012 and 2013 does not bode well for output growth in the early part of the forecast period of 2014.
- According to CBS, investments by food, drinks and tobacco manufacturers are anticipated to increase by 8.0% in 2014. Dairy product manufacturers in particular plan to invest EUR700.0 million (US$915.0 million) in increasing their processing capacity by 2015. Seven new dairy processing facilities and a number of expansion projects are expected to be complete over the forecast period. According to the Dutch Dairy Association, the increase in investment is due to the growing international demand for products and the planned abolishment of milk quotas in 2015. Increased investment will support the growth of the manufacturing plants category over the forecast period.
- The Netherlands has been successful in attracting foreign tourists, due in part to its hosting of numerous cultural and special events such as King's Day and the International Theatre School Festival. Growth in tourist arrivals supported activity in the construction of tourism infrastructure, particularly hotels. Various hotel projects are scheduled to be completed over the next two years, including two in Amsterdam: the Hyatt Regency hotel, which is scheduled to open in 2015, and Park Inn Hotel by Radisson, expected to open in the fourth quarter of 2014. Growth in the commercial construction market will be driven by the performance of the leisure and hospitality buildings category.
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Companies Mentioned in this Report: Royal Volker Wessels Stevin NV, Chicago Bridge & Iron Company NV, Koninklijke Boskalis Westminster NV, Royal BAM Group nv, Heijmans NV
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