January constructsteel newsletter

Total construction spending in the US increased in November compared to levels in October and a year earlier. Construction spending in November totalled US$1.63 trillion at a seasonally adjusted annual rate, 0.4% above the October rate and 9.3% higher than in November 2020. Gains in private residential and non residential projects outweighed decreases in public outlays. Public sector investments were down in part because Congress has failed to provide funding so far for the Bipartisan Infrastructure bill enacted last year.

An increasing number of urbanisation projects will drive growth in the construction sector in the Middle East. Whilst the Covid-19 pandemic has slowed down project spending in the region, the ongoing modernisation of populous regional centres such as Dubai, Riyadh, and Cairo since the oil price crash of 2014–15 will drive demand for construction.

Turkish builders have postponed some projects and slowed the pace of others after a currency meltdown sent construction costs soaring. The industry, which accounts for about 5% of economic output, may cut jobs and is likely to shrink this quarter as builders await more stable prices, after the sector contracted 6.7% year on year in the third quarter. Costs for rebars, concrete and other construction materials have jumped more than 40% in the past three months.

Rental companies overtook contractors as the biggest buyers of construction equipment in Europe, in terms of volume. Rental companies bought 37.4% of the construction equipment sold in Europe in 2021, followed by contractors who took a 37.1% share. In value terms, contractors are still by far the most significant equipment buyers, accounting for some 42% of the value of equipment sold in Europe

Five UK-based modular building firms have teamed up to promote their interests through a new trade body. Make Modular has been set up under the auspices of Make UK, which used to be the Engineering Employers’ Federation. The modular building lobby has chosen to align with a manufacturing trade organisation rather than a construction or house-building federation.

Danish 3D printer maker Cobod has joined with Mexican cement giant Cemex to devise a method of using conventional ready-mix concrete during the 3D-printing process. The companies say this would reduce time and money compared with current 3D printing methods and traditional construction.

Commercial construction recovery in the US could stall in the coming year as contractors struggle with steel supply and pricing, among other issues. In a survey conducted by US Chamber of Commerce, about 95% contractors said they are experiencing at least one product shortage in the fourth quarter, with steel representing the most – reported product shortage by 27% of respondents.

Crisis-stricken Chinese developer China Evergrande Group has been ordered to demolish 39 buildings at a mega resort it is developing on artificial islands off the island of Hainan on China’s southern coast. Evergrande did not give the reason for the order, though some sources are referring to the company’s “unlawful means of obtaining the project certificate”, adding that the city had given Evergrande 10 days to tear the buildings down. Link In the meantime, Chinese authorities have taken over the under-construction Evergrande Guangzhou Football Stadium, which was due to become the world’s largest football stadium by capacity.

US-based construction technology company Trimble is expanding infrastructure software solutions portfolio. Trimble has acquired AgileAssets, a provider of enterprise infrastructure asset management software to private organisations and government – including national road authorities and state-level transportation agencies in the US.

A coalition of 62 construction companies known as Jungheung Group has become the third largest contractor in South Korea after completing its purchase of Daewoo Engineering & Construction. The company said it will retain all of Daewoo’s staff, and will not interfere in its management decisions. It added that it will focus on improving Daewoo E&C’s balance sheet and promoting the smooth operations of its foreign projects.