January constructsteel newsletter

Construction market trends

United States

X Values Permits (LHS, SAAR Millions) Output (RHS, SAAR USD Millions)
Jan-19 55.3 -1.72
Feb-19 50.3 -2.65
Mar-19 47.8 1.01
Apr-19 50.5 1.84
May-19 50.2 3.79
Jun-19 49.1 8.06
Jul-19 50.1 10.30
Aug-19 47.2 11.23
Sep-19 49.7 12.31
Oct-19 52 13.18
Nov-19 51.9 17.26
Dec-19 52.0 13.57
Jan-20 52.2 14.17
Feb-20 53.4 11.79
Mar-20 33.3 8.34
Apr-20 29.5 3.19
May-20 32 0.35
Jun-20 40 -0.45
Jul-20 40 -2.85
Aug-20 40 -6.64
Sep-20 47 -7.42
Oct-20 47.5 -7.26
Nov-20 46.3 -9.59
Dec-20 42.3 -8.84
Jan-21 44.9 -7.07
Feb-21 53.3 -7.36
Mar-21 55.6 -3.83
Apr-21 57.9 -1.02
May-21 58.5 -0.74
Jun-21 57.1 -0.69
Jul-21 54.6 0.68
Aug-21 55.6 2.30
Sep-21 56.6 3.01
Oct-21 54.3 3.27
Nov-21 51.0 7.09
Dec-21 52.0 7.61
Jan-22 51.0 9.99
Feb-22 51.3 13.19
Mar-22 58.0 11.48
Apr-22 56.5 16.75
May-22 53.5 18.43
Jun-22 53.2 18.61
Jul-22 51.0 21.71
Aug-22 53.3 23.08
Sep-22 51.7 25.66
Oct-22 47.7 25.34
Nov-22 46.6 25.68
Dec-22 48.4 27.97
Jan-23 49.3 24.58
Feb-23 48.0 24.00
Mar-23 50.4 24.90
Apr-23 48.5 23.68
May-23 51.0 21.91
Jun-23 50.1 20.71
Jul-23 50.0 16.38
Aug-23 48.1 17.31
Sep-23 44.8 14.46
Oct-23 44.3 14.07
Nov-23 45.3 13.32
Dec-23 45.4 10.97
Jan-24 46.2 11.09
Feb-24 49.5 9.33
Mar-24 43.6 7.27
Apr-24 48.3 4.38
May-24 42.4 4.91
Jun-24 46.4 5.48
Jul-24 48.2 4.99
Aug-24 45.7 3.82
Sep-24 45.7 4.54
Oct-24 50.3 3.78
Nov-24 49.6 1.75

U.S. construction spending remained flat in November 2024 as a modest rise in single-family housing was offset by a decline in multi-family homebuilding. Downside risks in outlook due to higher mortgage rates, labour shortages threat of import tariffs.

Private residential output was up 0.1% m-o-m (3.1% y-o-y) in November; Building permits were up 5.2% m-o-m (-1% y-o-y).

Private non-residential output was flat m-o-m (1.7% y-o-y) in November. Architecture Billings Index (ABI) was down to 49.6 in November from 50.3 in October (< 50, contraction).

China

X Values Series1
Jan-19 -1.90
Feb-19 -0.86
Mar-19 -1.40
Apr-19 -0.25
May-19 -1.27
Jun-19 -2.33
Jul-19 -2.30
Aug-19 0.58
Sep-19 2.90
Oct-19 3.11
Nov-19 2.01
Dec-19 0.07
Jan-20 -6.38
Feb-20 -15.49
Mar-20 -28.55
Apr-20 -19.28
May-20 -8.53
Jun-20 3.19
Jul-20 6.34
Aug-20 7.45
Sep-20 9.85
Oct-20 11.68
Nov-20 11.25
Dec-20 12.67
Jan-21 20.60
Feb-21 35.73
Mar-21 36.64
Apr-21 22.52
May-21 10.58
Jun-21 10.97
Jul-21 3.39
Aug-21 -3.96
Sep-21 -12.52
Oct-21 -16.65
Nov-21 -16.07
Dec-21 -16.80
Jan-22 -14.05
Feb-22 -13.16
Mar-22 -13.78
Apr-22 -23.32
May-22 -28.53
Jun-22 -28.03
Jul-22 -25.19
Aug-22 -22.29
Sep-22 -22.06
Oct-22 -20.27
Nov-22 -24.08
Dec-22 -29.91
Jan-23 -27.17
Feb-23 -19.69
Mar-23 -3.54
Apr-23 -5.79
May-23 -10.64
Jun-23 -21.93
Jul-23 -24.69
Aug-23 -25.96
Sep-23 -22.18
Oct-23 -21.17
Nov-23 -20.38
Dec-23 -21.75
Jan-24 -22.91
Feb-24 -23.97
Mar-24 -24.30
Apr-24 -21.62
May-24 -19.27
Jun-24 -14.61
Jul-24 -13.93
              Aug-24                -12.90
              Sep-24                -11.56
Oct-24 -8.59
Nov-24 -3.93

China’s real estate market shows signs of stabilising, and efforts to maintain stability and prevent further declines in the sector are set to continue in 2025.

The 3-month moving average y-o-y growth in floor space was down -24% in November; floor space sold was down -4% y-o-y.

Europe

X-values PMI (LHS) Output (RHS, %, y-o-y)
Jan-19 50.6 0.51
Feb-19 52.6 6.10
Mar-19 52.2 6.55
Apr-19 52.1 3.18
May-19 50.6 2.67
Jun-19 50.8 1.52
Jul-19 50.6 1.31
Aug-19 49.1 1.01
Sep-19 50.5 0.50
Oct-19 50.7 0.91
Nov-19 50.6 0.81
Dec-19 51.3 -1.28
Jan-20 51.9 4.70
Feb-20 52.5 0.10
Mar-20 33.5 -15.48
Apr-20 15.1 -30.19
May-20 39.5 -11.30
Jun-20 48.3 -4.40
Jul-20 48.9 -3.39
Aug-20 47.8 -0.50
Sep-20 47.5 -2.49
Oct-20 44.9 -2.10
Nov-20 45.6 -0.80
Dec-20 45.5 1.40
Jan-21 44.1 -4.88
Feb-21 45.0 -5.74
Mar-21 50.1 17.84
Apr-21 50.1 42.39
May-21 50.3 12.85
Jun-21 50.3 5.02
Jul-21 49.8 3.31
Aug-21 49.5 0.10
Sep-21 50 3.58
Oct-21 51.2 4.09
Nov-21 53.3 2.82
Dec-21 52.9 -0.30
Jan-22 56.6 6.15
Feb-22 56.3 9.56
Mar-22 52.8 4.18
Apr-22 50.4 3.60
May-22 49.2 3.90
Jun-22 47 3.08
Jul-22 45.7 2.40
Aug-22 44.2 3.41
Sep-22 45.3 1.38
Oct-22 44.9 1.67
Nov-22 43.6 1.67
Dec-22 42.6 0.20
Jan-23 46.1 0.87
Feb-23 47.6 1.73
Mar-23 45.0 0.00
Apr-23 45.2 0.77
May-23 44.6 1.15
Jun-23 44.2 1.06
Jul-23 43.5 2.54
Aug-23 43.4 1.55
Sep-23 43.6 1.85
Oct-23 42.7 0.39
Nov-23 43.4 0.19
Dec-23 43.6 2.87
Jan-24 41.3 0.29
Feb-24 42.9 -1.60
Mar-24 42.4 -0.48
Apr-24 41.9 -0.86
May-24 42.9 -2.38
Jun-24 41.8 -1.34
Jul-24 41.4 -2.10
Aug-24 41.4 -1.81
Sep-24 42.1 -2.01
Oct-24 43 -0.29
Nov-24 42.7
Dec-24 42.9

Eurozone’s construction sector remains weak due to the decline in residential activity.

Eurozone construction up 0.4% m-o-m (-1.8% y-o-y) in August; Buildings up 1.8% m-o-m (-1.6% y-o-y); Civil engineering down -2.2% m-o-m (-1.9% y-o-y).

The IHS Markit Eurozone Construction PMI rose to 43 in October, up from 42.1 in September (< 50, contraction).

India

X Values Avg industrial production (y-o-y)
Jan-19 1.4
Feb-19 1.8
Mar-19 5.0
Apr-19 4.3
May-19 2.9
Jun-19 0.2
Jul-19 2.0
Aug-19 -0.7
Sep-19 -5.7
Oct-19 -5.4
Nov-19 0.3
Dec-19 0.9
Jan-20 1.4
Feb-20 5.1
Mar-20 -9.0
Apr-20 -44.4
May-20 -21.1
Jun-20 -12.1
Jul-20 -8.0
Aug-20 -7.5
Sep-20 -0.3
Oct-20 -1.8
Nov-20 -1.7
Dec-20 -0.3
Jan-21 0.7
Feb-21 -3.7
Mar-21 12.6
Apr-21 62.6
May-21 16.4
Jun-21 9.4
Jul-21 9.9
Aug-21 12.2
Sep-21 5.4
Oct-21 8.7
Nov-21 3.2
Dec-21 4.1
Jan-22 4.0
Feb-22 5.9
Mar-22 4.8
Apr-22 9.5
May-22 19.3
Jun-22 13.1
Jul-22 4.8
Aug-22 4.2
Sep-22 8.3
Oct-22 0.7
Nov-22 5.7
Dec-22 8.3
Jan-23 9.7
Feb-23 7.4
Mar-23 4.2
Apr-23 4.6
May-23 5.2
Jun-23 8.4
Jul-23 8.5
Aug-23 13.4
Sep-23 9.5
Oct-23 12.7
Nov-23 7.9
Dec-23 5.1
Jan-24 4.2
Feb-24 7.1
Mar-24 6.3
Apr-24 6.9
May-24 6.9
Jun-24 5.0
Jul-24 6.3
Aug-24 -1.5
Sep-24 2.4
Oct-24 3.7
Nov-24 4.3

India’s core sector industrial production expanded at a four-month high rate, driven by a surge in cement output, the sharpest increase in this key construction input in over a year.

The weighted average of eight core industries’ output was up by 4.3 y-o-y in November; production of steel was up 4.8%, and cement was up 13% y-o-y.

 

Technical trends

Advancing Steel-Timber Innovation

constructsteel, the SLB and CTBUH have been driving progress in steel-timber hybrid construction since the 2022 Steel-Timber Hybrid Buildings Conference. In 2024, they unveiled Steel-Timber Hybrid Buildings: Case Studies, a CTBUH research report funded by SLB and constructsteel. The launch was celebrated at the CTBUH2024 International Conference with CTBUH CEO Francisco Javier Quintana de Uña, Ryan Flom, Kimberley Olson (Nucor Corporation and constructsteel Vice-Chair), Cees de Jager, and Daniel Safarik, CTBUH Director of Research and Thought Leadership.

Learn more

What the real estate industry needs to know about data centers

The data centre industry presents significant opportunities for real estate companies as demand for digital infrastructure surges. This growth is driven by the ongoing digital and cloud revolutions, alongside the rapid adoption of AI, which collectively require a dramatic expansion in data centre capacity. Current projections indicate a need to more than triple global data centre capacity by 2030, highlighting both opportunities and challenges, such as power constraints and supply chain issues. Real estate companies can engage in three main ways: acquiring and preparing land for data centres, partially developing facilities, or fully constructing and managing them. Partnerships with experienced operators are increasingly common, helping real estate players navigate the technical complexities of this market. The risk of obsolescence remains, but strong tenant renewal rates mitigate competitive pressures. With higher yields and sustained demand, data centres are poised to become a key growth area in real estate investment.

Full article

Construction news headlines

construction market and regulations

North America:

MIT’s spinout, Commonwealth Fusion Systems (CFS), is developing a 400MW nuclear fusion power plant in Chesterfield County, Virginia, with operations slated for the early 2030s. The project, in collaboration with Dominion Energy Virginia, aims to power about 150,000 homes. CFS plans to use a novel superconducting magnet for a more compact fusion device, setting it apart from larger reactors like ITER in France. While CFS is optimistic about its timeline, experts express skepticism, citing challenges faced by similar projects like ITER and the unproven nature of its demonstration machine, SPARC, expected to show net energy production by 2027.

Link

Europe:

The Ministry of Housing in UK has launched a consultation on reforms to give councils expanded compulsory purchase powers, allowing them to acquire land at fair market value rather than inflated “hope value” tied to future development potential. The changes aim to enable faster and more cost-effective development of housing, infrastructure, and public amenities, especially on vacant or derelict sites. These measures seek to boost the availability of social and affordable housing while revitalizing underused land. Feedback from the consultation, running until 13 February 2025, will inform the upcoming Planning and Infrastructure Bill.

Link

Europe:

The German Demolition Association (DA) has outlined key demands to the country’s new federal government, urging action on the promotion of the circular economy, addressing skilled labor shortages, and reducing bureaucratic hurdles. The DA highlights challenges such as complex approval processes, aging infrastructure, and stringent regulations that hinder the industry, including transport restrictions on heavy machinery. The association also advocates for the prioritization of secondary building materials in public procurement, streamlined laws, and faster work permit processes for foreign workers. Additionally, the DA stresses the need for improved pollutant investigations to safeguard workers and proper disposal of hazardous materials like asbestos.

Link

Asia:

Beijing’s metro system has expanded by 43km with the opening of three new extensions, bringing the total network length to 879km. The completed projects include extensions on the Changping Line, Line 12, and a new link connecting Sijiqingqiao and Dongba North. The new lines improve east-west and north-south connectivity, easing traffic congestion in the city’s central area and supporting development along the routes. Beijing’s metro now consists of 29 lines and 522 stations, making it one of the largest and most comprehensive transit systems globally.

Link

Asia:

China is making steady progress in reducing its reliance on coal-fired power, with new coal generation capacity declining from 54GW per year (2011-2015) to 34GW per year (2021-2023). This shift has been driven by significant growth in renewable energy, with solar and wind installations growing from 9.6GW annually (2011-2015) to 57GW (2021-2023). Additionally, nuclear and natural gas power have expanded. However, coal still accounts for nearly 60% of China’s energy, and the country remains the largest producer of coal-fired electricity, even as it aims for net-zero carbon emissions by 2060.

Link

Africa:

Morocco aims to more than double its airport capacity from 38 million to 80 million passengers by 2030, in preparation for co-hosting the FIFA World Cup with Spain and Portugal. The expansion will increase capacity at major airports, including Casablanca’s Mohammed V International to 23 million passengers, and Marrakech and Agadir to 14 million and 6.3 million, respectively. Additionally, the country is extending its high-speed rail network to Marrakech and plans to serve 87% of the population with rail by 2040. The government is also investing in stadium renovations and constructing a 115,000-seat stadium near Casablanca for the event.

Link

Building materials and construction technologies

World:

The World Cement Association (WCA) projects a 25% decline in global cement demand by 2050, from 4.1 billion tonnes in 2023 to 3 billion tonnes, driven by decarbonisation and industry transformation. Clinker demand, a key source of CO₂ emissions, is expected to halve, reducing reliance on carbon capture technologies. The report highlights the adoption of alternative materials, clinker-free technologies, and supply chain improvements as reshaping demand patterns. Policymakers and industry leaders must align strategies with these shifts to ensure sustainable progress.

Link

World:

The construction industry is rapidly evolving, with innovations in connected worksites, digital twins, AI, and automation reshaping how projects are conceived and executed. By 2030, connected construction sites are expected to not only collect data but to use it in interactive digital twins, enhancing project planning, quality assurance, and bidding. Technologies like AI-driven 4D design and automation are also making significant strides, particularly in mining and earthworks, though full automation in construction machinery remains a long-term goal. The next five years will see further integration of advanced imaging, miniaturized data capture, and autonomous systems, revolutionizing efficiency and decision-making in construction.

Link

North America:

Tata Chemicals Soda Ash Partners is exploring the deployment of up to eight micro nuclear reactors at its Green River, Wyoming, soda ash facility in partnership with BWXT Advanced Technologies. The reactors, designed by BWXT, are 50MW high-temperature gas units that can be transported by truck and could be operational by the early 2030s. The move aims to make Tata’s soda ash production more sustainable, as the facility processes trona ore, the world’s largest reserve for soda ash. The project follows a feasibility study and builds on efforts by the Wyoming Energy Authority to assess microreactor potential in the state, with the Tata deal seen as a major boost for the nuclear sector.

Link

North America:

U.S. 3D concrete printing firm ICON has begun constructing 100 3D-printed homes in Texas for the chronically homeless, in collaboration with the Lennar Foundation and Mobile Loaves & Fishes (MLF). The homes will be part of a larger expansion of MLF’s Community First! Village, a 127-acre site aimed at providing housing for the unhoused. This expansion, which will eventually offer 1,900 homes, includes a mix of townhomes and single-family residences, ranging from 380 to 1,040 square feet. The project, projected to cost over $100 million, follows ICON’s earlier efforts at the same site, contributing 17 homes in 2020.

Link

Europe:

Ireland has unveiled the world’s first 3D-printed concrete social housing development, consisting of three 3-bedroom homes in Dundalk, County Louth. The project, a collaboration between Louth County Council, Harcourt Technologies, and Roadstone, was completed in just 132 days using a Cobod 3D printer, reducing construction time by 35% compared to traditional methods. The printed walls, built to meet Eurocode 6 standards, were created using 90 cubic meters of concrete and do not require reinforcement or columns. This milestone project sets new standards for sustainable, high-quality housing.

Link

Middle East:

Neom, Saudi Arabia’s economic development giga project, has invested in GMT Robotics, a Danish start-up specializing in robotic rebar assembly and handling systems. GMT’s technology, which allows offsite prefabrication, can reduce onsite workforce requirements by 90%. This move aligns with Neom’s goal to integrate robotics and automation in construction, a market projected to grow from $168 million in 2022 to $775 million by 2032. The investment is seen as a step toward sustainable development, creating high-skilled jobs and establishing Neom as a hub for innovation.

Link:

Construction sector players

Europe:

The Costain and Siemens Mobility joint venture has secured a £300m contract to deliver high-voltage power supply systems for the 225km HS2 route between Birmingham and London. The project includes designing, building, and maintaining power systems, with a seven-year maintenance contract valued at £32m and potential extensions. This follows a separate £400m HS2 contract awarded to Costain for tunnel and lineside mechanical and electrical systems starting in 2025.

Link:

Europe:

Balfour Beatty has secured a contract from Prysmian to install 68km of high-voltage direct current (HVDC) underground cables from Fraisthorpe Sands to Drax in Yorkshire, along with 1km of land cable in Peterhead, Scotland. Part of the £1.6bn Eastern Green Link 2 project, the cables will form a critical segment of a 2GW HVDC “superhighway” connecting offshore wind energy to the UK grid.

Link

Europe:

Barhale Holdings has achieved a 62% increase in turnover over the past two years, reaching £177m for the fiscal year ending 30 June 2024. Profit before tax surged to £8.4m, reflecting strong growth driven by disciplined execution of its five-year business plan, focusing on cost control, risk management, and meeting client expectations. The company has reinvested profits into expanding its capabilities, including acquiring design firm ESL to enhance its construction services. Looking ahead, Barhale plans to further innovate and grow within sectors like water and rail electrification, with a strong order book of £1.06bn and additional contracts on the horizon.

Link

Europe/North America:

Skanska has won two significant US contracts totaling $786 million. The first, a $450 million project at Boston’s Logan Airport, involves constructing a parking garage with space for 5,000 vehicles, a vehicular bridge, and pedestrian connections. The second, a $336 million contract in California, will see the construction of 17.4km of express lanes on Interstate 15 in a bid to reduce traffic congestion. Both projects are set to begin in early 2025, with completion slated for 2028.

Link

Europe:

Holcim is selling its 84% stake in Lafarge Africa to China’s Huaxin Cement for $1 billion, with the deal expected to be finalized in 2025. The Swiss cement-maker also plans to spin off its North American business, which will be separately listed on the New York Stock Exchange, and additionally on the SIX Swiss exchange. Shareholder approval for the spin-off is scheduled for Holcim’s AGM on May 14, 2025, with the separation expected to be completed in the first half of 2025.

Link

Europe:

Austrian construction firm Strabag Group has agreed to acquire WTE Wassertechnik, a German water management company, from EVN Group for €100 million ($105 million). The acquisition will encompass WTE’s operations in Europe and the Middle East, excluding projects in Budva, Zagreb, and Prague. While EVN will continue to finance and bear most of the risk for WTE’s ongoing projects in Kuwait and Bahrain, the deal is expected to close by February 2025.

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