Paul Thomen

Thursday, 25 July 2013

Lithuania Construction Market Trends and Opportunities 2017 Report at

The report Construction in Lithuania – Key Trends and Opportunities to 2017 by Timetric is now available at Contact with Construction in Lithuania – Key Trends and Opportunities to 2017 in subject line and your contact details to purchase this report or get your questions answered.

The Lithuanian construction industry suffered a significant contraction between 2008 and 2012, with rising interest rates and increased caution from banks with regard to lending contributing to a difficult time for the industry. During this period, investment in infrastructure supported the construction industry, and Timetric’s recently released report – Construction in Lithuania: Key Trends and Opportunities to 2017 – suggests that a strong performance by the infrastructure construction sector will lead the broader Lithuanian construction industry to growth over the next four years.

The infrastructure construction market accounted for over half of the Lithuanian construction industry in 2012, and was valued at US$X.X billion. According to the World Economic Forum’s Global Competitiveness Report 2012-2013, Lithuania’s infrastructure ranks 42nd out of 144 global economies – whilst its roads, ports, and rail infrastructure were respectively ranked 32nd, 35th, and 20th, its general ranking was weakened by its 86th placed air infrastructure.

The Lithuanian construction industry recorded a CAGR of -15.50% during the review period (2008−2012). The housing market contracted in 2009 as interest rates began to rise and banks tightened their lending conditions. Deflation in the property sector was one of the key factors in the decline in domestic demand and contributed to the country’s economic contraction of 15% in 2009. Infrastructure investment supported the construction industry during the financial crisis, recording the lowest decline of all construction markets during the review period at a CAGR of -6.43%. Timetric expects the Lithuanian construction industry to record a CAGR of 3.52% over the forecast period (2012−2017).

As a result of its geographical location, freight transport plays a key role in Lithuania’s economy. Indeed, the road infrastructure category was the largest infrastructure construction category in 2012, accounting for over a third of the market. The EU’s structural funds are being used to improve the state of the roads to carry greater volumes of international traffic to comply with the requirements of international transport corridors. Consequently, Timetric expects infrastructure to be the fastest growing construction market in Lithuania to 2017.

Lithuania’s real GDP growth moderated sharply from 5.9% in 2011 to 3.6% in 2012, owing to weak gross capital formation and external demand. Following strong growth of 9.7% in 2011, gross capital formation declined by 18% in 2012, as drawdown in inventories and weaker fixed investments slowed investment activity. According to Timetric estimates, Lithuania’s real GDP is set to expand at a slower pace of 2.9% in 2013, before recovering to 3.4% in 2014, as domestic demand is likely to offset weaker investment and a marginal slowdown in export growth.

The demand for class B office buildings remains higher than that of class A buildings. Only Vilnius, Lithuania’s capital city and the largest market for office buildings in the country saw new office space development in 2012, with seven new projects coming to the market. Kaunas and Klaipeda, Lithuania’s other two large cities have witnessed very little office space development since the economic crisis. Developers are hesitant to start construction on major projects without securing pre-let contracts. Declining demand for exports, low domestic consumption rates and banks tightening lending amid an increasing volume of non-performing loans negatively affected the industrial sector’s growth during 2008−2010. Lithuanian exports increased by 14.5% and were a key factor in the country’s economic growth in 2012. Industrial production output in 2012 exceeded 2008 levels by 1.1% and 2011 levels by 3.7%. Highly-skilled, low-cost labor compared to Western Europe provides the nation with a competitive advantage.

EU structural funds amounting to LTL5.4 billion have been allocated to Lithuania for the development and modernization of the country’s infrastructure during 2007–2013. A large proportion of the  nation’s energy resources are imported from Russia. The Lithuanian government has formed the National Energy Independence Strategy that will aim to achieve security of energy supply. The strategy includes full integration of Lithuanian power systems with European energy systems, the development of local energy generation capacities and links with European gas pipeline networks.

Target audience

- Construction companies.
- Suppliers to Construction companies.
- Contractor research organizations.
- Trade body, academia or other industry observers.
- Companies involved at any stage in the manufacturing, procurement and marketing process.
- Marketing and advertising agencies.

Table of Content

8 Company Profile: City Service AB
8.1 City Service AB – Company Overview
8.2 City Service AB – Main Services
8.3 City Service AB – Company Information
8.3.1 City Service AB – key competitors
8.3.2 City Service AB – key employees
9 Company Profile: AB Panevezio statybos trestas
9.1 AB Panevezio statybos trestas – Company Overview
9.2 AB Panevezio statybos trestas – Main Services
9.3 AB Panevezio statybos trestas – Company Information
9.3.1 AB Panevezio statybos trestas – key competitors
9.3.2 AB Panevezio statybos trestas – key employees
10 Company Profile: Vilsota AB
10.1 Vilsota AB – Company Overview
10.2 Vilsota AB – Main Products and Services
10.3 Vilsota AB – Company Information
10.3.1 Vilsota AB – key competitors
10.3.2 Vilsota AB – key employees
11 Company Profile: International Construction Corporation
11.1 International Construction Corporation – Company Overview
11.2 International Construction Corporation – Main Services
11.3 International Construction Corporation – Company Information
11.3.1 International Construction Corporation – key competitors
11.3.2 International Construction Corporation – key employees
12 Company Profile: UAB Kelprojektas
12.1 UAB Kelprojektas – Company Overview
12.2 UAB Kelprojektas – Main Services
12.3 UAB Kelprojektas – Company Information
12.3.1 UAB Kelprojektas – key competitors
12.3.2 UAB Kelprojektas – key employees

For more details contact Mr. Priyank Tiwari: / +18883915441

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