March constructsteel newsletter

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Expert Q&A

Steelworks New Zealand’s Hinuera Sheds project – Excellence in sustainability constructsteel award winner 2024

We are proud to feature Steelworks New Zealand as the recipient of the constructsteel Excellence in Sustainability Award 2024 for their innovative approach in the Hinuera Sheds project. This award celebrates their outstanding contribution to sustainability in the steel construction industry. We caught up with Grier Fuller, Co-Director, to discuss the sustainable practices behind the project, the challenges they overcame, and the role of steel in shaping a more sustainable future for the industry.

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Technical trends

The state of demand for commercial real estate

McKinsey Senior Partner Aditya Sanghvi shares insights on the current state of office attendance and the evolving landscape of commercial real estate. Despite some companies pushing for a return to the office, attendance figures remain relatively stable. Sanghvi discusses the potential long-term implications for office space demand and highlights opportunities for real estate to innovate and meet new needs. He underscores the importance of collaboration between city leaders and real estate developers in revitalising urban areas. The conversation reveals the necessity for stakeholders to adapt to changing dynamics and ensure continued urban vibrancy.

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Project story

Piles of steel sheet piling

Steel sheet piling plays a key role in flood defence, which is in growing demand

The increasing risk of flooding due to climate change and population movement has made steel sheet piling a key material for flood defences. Valued for its quick installation, durability, and flexibility, steel sheet piling is used to build both temporary and permanent barriers. It is being employed globally to protect areas from rising sea levels and flash flooding, with governments updating regulations to ensure future flood resilience.

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Awards 2025

constructsteel Awards: 2025 nominations open until April 30!

Nominations for the 2025 constructsteel Awards are open until April 30, recognising Best Project of the Year, Innovation of the Year, and Excellence in Sustainability. Learn more about the award categories, judging criteria, and online nomination forms.

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Construction market trends

United States

X Values ABI (LHS) Output (RHS, %, y-o-y)
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 52.0 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 4.18
Nov-24 49.6 2.87
Dec-24 44.1 2.90
Jan-25 45.6 1.82

In January, US single family home building declined due to adverse weather; rebound may be muted by anticipated higher costs due to tariffs and high mortgage rates.

Private residential output down -0.4% m-o-m (3.1% y-o-y) in January; Building permits down -0.6% m-o-m (-2.3% y-o-y) in January.

Private non-residential output unchanged from December (1.8% y-o-y). Architecture Billings Index (ABI) up to 45.6 in January from 44.6 in December (< 50, contraction).

China

Jan-19 17.91
Feb-19 13.08
Mar-19 10.69
Apr-19 13.08
May-19 11.15
Jun-19 9.12
Jul-19 6.61
Aug-19 6.95
Sep-19 6.05
Oct-19 11.01
Nov-19 8.02
Dec-19 8.26
Jan-20 -6.58
Feb-20 -17.65
Mar-20 -30.64
Apr-20 -18.42
May-20 -8.57
Jun-20 3.82
Jul-20 7.59
Aug-20 7.70
Sep-20 3.91
Oct-20 1.28
Nov-20 1.84
Dec-20 4.71
Jan-21 11.84
Feb-21 24.91
Mar-21 8.31
Apr-21 -4.99
May-21 -10.93
Jun-21 -6.07
Jul-21 -9.99
Aug-21 -13.12
Sep-21 -17.42
Oct-21 -21.25
Nov-21 -22.64
Dec-21 -28.58
Jan-22 -24.11
Feb-22 -23.13
Mar-22 -17.49
Apr-22 -28.93
May-22 -36.03
Jun-22 -43.82
Jul-22 -44.15
Aug-22 -45.33
Sep-22 -45.13
Oct-22 -42.13
Nov-22 -43.85
Dec-22 -43.81
Jan-23 -40.34
Feb-23 -27.45
Mar-23 -19.16
Apr-23 -24.24
May-23 -28.66
Jun-23 -29.59
Jul-23 -29.12
Aug-23 -27.71
Sep-23 -21.52
Oct-23 -19.70
Nov-23 -11.31
Dec-23 -9.94
Jan-24 -11.57
Feb-24 -22.97
Mar-24 -28.35
Apr-24 -23.08
May-24 -21.01
Jun-24 -19.48
Jul-24 -21.46
Aug-24 -19.83
Sep-24 -18.95
Oct-24 -21.22
Nov-24 -24.28
Dec-24 -23.27

*no data available in January

Measures rolled out in the second half of 2024 contributed to stabilising real estate expectations, particularly in tier 1 cities; additional measures are expected to be rolled out to help stabilise the overall property market.

The 3-month moving average y-o-y decline in floor space started reached -23% in December; floor space sold was up 0.6% y-o-y.

Europe

X-values PMI (LHS) Output (RHS, %, y-o-y)
Jan-19 50.6 0.51
Feb-19 52.6 6.21
Mar-19 52.2 6.67
Apr-19 52.1 3.07
May-19 50.6 2.57
Jun-19 50.8 1.73
Jul-19 50.6 1.11
Aug-19 49.1 0.91
Sep-19 50.5 0.70
Oct-19 50.7 0.71
Nov-19 50.6 0.70
Dec-19 51.3 -1.09
Jan-20 51.9 4.60
Feb-20 52.5 0.10
Mar-20 33.5 -15.38
Apr-20 15.1 -30.29
May-20 39.5 -11.11
Jun-20 48.3 -4.59
Jul-20 48.9 -3.40
Aug-20 47.8 -0.30
Sep-20 47.5 -2.59
Oct-20 44.9 -2.00
Nov-20 45.6 -0.60
Dec-20 45.5 1.20
Jan-21 44.1 -4.79
Feb-21 45.0 -5.64
Mar-21 50.1 17.70
Apr-21 50.1 42.45
May-21 50.3 12.73
Jun-21 50.3 5.13
Jul-21 49.8 3.52
Aug-21 49.5 -0.10
Sep-21 50 3.58
Oct-21 51.2 4.19
Nov-21 53.3 2.72
Dec-21 52.9 -0.20
Jan-22 56.6 6.36
Feb-22 56.3 9.44
Mar-22 52.8 4.18
Apr-22 50.4 3.70
May-22 49.2 3.90
Jun-22 47 3.08
Jul-22 45.7 2.30
Aug-22 44.2 3.41
Sep-22 45.3 1.38
Oct-22 44.9 1.77
Nov-22 43.6 1.76
Dec-22 42.6 0.20
Jan-23 46.1 0.77
Feb-23 47.6 1.73
Mar-23 45.0 0.10
Apr-23 45.2 0.77
May-23 44.6 1.06
Jun-23 44.2 1.06
Jul-23 43.5 2.44
Aug-23 43.4 1.55
Sep-23 43.6 1.85
Oct-23 42.7 0.39
Nov-23 43.4 0.10
Dec-23 43.6 2.77
Jan-24 41.3 0.10
Feb-24 42.9 -1.51
Mar-24 42.4 -0.67
Apr-24 41.9 -0.77
May-24 42.9 -2.19
Jun-24 41.8 -1.24
Jul-24 41.4 -1.91
Aug-24 41.4 -1.43
Sep-24 42.1 -1.81
Oct-24 43 -0.86
Nov-24 42.7 -0.19
Dec-24 42.9 -0.19
Jan-25 45.4

Eurozone: construction continued its weak performance at the end of 2024, with improving civil engineering activity negated by weak residential activity.

Eurozone construction remained unchanged from November (-0.2% y-o-y); Buildings down -0.1% m-o-m (-0.5% y-o-y) in December; Civil engineering also remained unchanged (3.5% y-o-y) in December.

The IHS Markit Eurozone Construction PMI fell to 42.7 in February from 45.4 in January (< 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 3.8
Nov-24 4.4
Dec-24 4.8
Jan-25 4.6

India’s core sector activity is marking a strong start to the year, led by the cement industry, which saw the strongest growth due to rising demand from infrastructure and housing.

Weighted average of eight core industries output up by 4.6 y-o-y in January; production of steel up 3.7%, cement up 14.5% y-o-y.

 

Construction news headlines

construction market and regulations

North America:

Construction companies are grappling with risks from tariff-induced material price hikes, reminiscent of the previous Trump administration’s impact on steel prices. Amid slipping nonresidential construction spending, firms are adopting escalation clauses in contracts, a practice popularised during the pandemic to counter price volatility. Legal experts emphasise the need for contingency planning, contract-specific clauses, and risk-sharing strategies to mitigate time and cost overruns. Adjusting contract terms—like adopting cost-plus agreements or phasing large projects—can offer financial relief against fluctuating tariff costs.

Link

North America:

The construction backlog improved to 8.4 months in January, signalling renewed industry optimism, particularly in the Western and Southern regions. This rise marks a reversal from December’s decline and is fuelled by strong contractor confidence post-presidential election, as per the Associated Builders and Contractors survey. Despite a fall in staffing expectations due to decreased job openings, sales and profit margin outlooks remain robust.

Link

Europe:

Euroconstruct reports a significant downturn in European residential construction, with only 1.5 million units expected in 2025, marking the lowest in ten years and a 5.5% drop from 2024. Germany’s ongoing decline, fuelled by high construction costs, heavily influences this trend. In contrast, Northern Europe anticipates growth, with Sweden, Denmark, and Finland leading increases by 2026. While civil engineering benefits from public projects, growth is slowing due to fiscal constraints and labor shortages.

Link

Europe:

New data reveals that construction insolvencies in England and Wales decreased to 4,032 in 2024, down 8% from the previous year. December saw a 20% decline in insolvencies compared to the same month in 2023. While this reduction is promising, the sector continues to face challenges like economic uncertainty and rising input costs. However, streamlined planning processes and increased mortgage applications may positively impact housebuilding activity by late 2025, potentially benefiting the broader construction sector.

Link

Asia:

In 2024, China commenced construction of 94.5 gigawatts of coal-fired power plants, the highest in a decade, despite significant gains in renewable energy with 356 GW of wind and solar commissioned. Concerns over power shortages have driven this coal expansion, though China plans to reduce coal usage during the 2026-2030 period. The reliance on coal complicates emission reduction efforts, while renewables face grid integration challenges. The recent surge in coal capacity construction may be an effort to maximise output before potential restrictions are implemented next year.

Link

Asia:

India’s 2025 budget emphasises infrastructure as a key driver for growth, increasing investment to 11.2 trillion rupees. This includes a 7% boost for highways and a 10% rise for rail infrastructure, targeting connectivity and logistics improvements. The government aims to enhance public-private partnerships and offers interest-free loans to states for infrastructure projects. Additionally, a Nuclear Energy Mission is launched with a goal of generating 100GW of nuclear power by 2047. This commitment sets the stage for significant construction opportunities across the country.

Link

Building materials and construction technologies

North America:

PulteGroup tested the Hadrian X robot in Florida to build walls in just one day using AI technology. Created by FBR, the robot uses an advanced arm to place concrete blocks with a strong adhesive, enhancing precision and durability. This system addresses labor shortages and promotes efficient, sustainable building practices. PulteGroup showcased this innovation in one of ten homes using the Hadrian X system across the U.S.

Link

North America:

Alquist 3D completed a 5,000-square-foot concrete 3D-printed expansion for Walmart in Huntsville, Alabama, utilising RIC M1 Pro printers. The project, executed by FMGI, highlights a reduction in construction time by 3-4 weeks and minimises material waste to under 4%. This follows their previous collaboration on a seismic-ready facility in Tennessee. RIC aims for further improvements in design optimisation and cost reduction as they currently use only half the printer’s potential.

Link

Europe:

Mannok has begun importing Ultra White Cement from Turkish company Çimsa, marking an expansion of their product line. This premium cement, featuring exceptional whiteness and strength, is produced at Çimsa’s Mersin factory. Mannok’s integration with Çimsa signals a strategic move to diversify its offerings. Notably, cement imports to the UK have surged, rising from 22% in 2019 to over 32% in 2023, contributing to Mannok’s import initiatives.

Link

Europe:

Newcastle University researchers have developed an eco-friendly mortar using recycled plastic (PET) and silica aerogel, reducing thermal conductivity by up to 55% compared to standard mortar. The new mix improves insulation and meets international masonry standards. This innovative material presents a sustainable building solution by cutting plastic waste and enhancing energy efficiency. Researchers are seeking industry partners to further test the material’s potential in real-world construction.

Link

Europe:

The EU is set to launch Green Deal Industrial Plan which aims to balance net-zero goals with industrial competitiveness. The cement sector seeks export adjustments, decarbonisation funding, and low-carbon energy access. Carbon Market Watch and WWF, on the otherhand, criticise excessive free emissions allowances and question funding for CCUS. Emissions and allowances have declined since 2017, but challenges persist with CBAM, rising energy costs, and the plan’s uncertain impact on industry.

Link:

Asia:

Indonesia’s government aims to build 3M houses annually, boosting cement demand. Financing from Qatar supports 4–6M units, while the UAE commits to 1M homes. Special envoy Hashim Djojohadikusumo noted investment interest from China, Türkiye, India, and Singapore. The 2025 housing budget is set at US$310M, signalling significant opportunities for the cement and construction materials sector.

Link

Construction sector players

North America:

Bentley Systems reported a stellar 2024 performance with $1.4 billion in revenue, a 10.1% increase from 2023. Despite a downturn in China, growth is fueled by its subscription model, making up 90% of revenue. Operating margins rose to 22.3%. The firm anticipates strong growth in 2025, focusing on infrastructure projects in the US and EMEA, with an emphasis on AI and data center investments. China remains a challenge, with declining revenues and no recovery expected.

Link:

North America:

WSP reported strong financial growth in 2024, with revenues up 12% to CA$16.17 billion and profits rising 24% to CA$681.4 million. Despite market uncertainty under the Trump administration, the firm remains optimistic, citing bipartisan U.S. infrastructure support. WSP announced a seven-year, $1 billion partnership with Microsoft to drive digital innovation in architecture, engineering, and construction. The firm highlights opportunities tied to megatrends like energy transition, urbanization, and digitalization as key areas of focus moving forward.

Link

Europe:

French building materials firm Saint-Gobain has finalized the £800m acquisition of UK-based construction chemicals supplier Fosroc. This strategic move adds 20 manufacturing plants, 3,000 employees, and approximately £400m in annual revenue to the group. Originating as a British brand and owned by JMH Group since 2002, Fosroc’s primary markets include India, the Middle East, and Asia-Pacific. Its diverse product offerings enhance Saint-Gobain’s portfolio, bolstering its position in the construction chemicals sector.

Link

Middle East:

Saudi Arabia’s Neom has secured a $5 billion investment from DataVolt, aimed at establishing a 1.5-gigawatt AI data center in Oxagon, an industrial hub within Neom. Expected to be operational by 2028, this deal strengthens Saudi Arabia’s ambition to transform Neom into a global logistics and AI powerhouse. The project is integral to Crown Prince Mohammed bin Salman’s vision of diversifying the economy from oil, aligning with the broader agenda for AI and technology advancement.

Link

Middle East:

The Public Investment Fund (PIF) of Saudi Arabia has acquired a 30% stake in Masdar for Building Materials Company, through newly issued shares. This investment is poised to fuel Masdar’s digital transformation, operational efficiency, and aid its strategic partnerships. With 105 branches in 29 cities, Masdar is set for significant expansion, reinforcing local supply chains within Saudi’s construction sector—a strategic focus for PIF.

Link

Asia:

Samsung C&T is pivoting towards transportation and data center projects as it navigates a slowdown in the semiconductor sector. The firm’s 2024 revenue fell 3% to KRW 18.655 trillion (US$12.9 billion), with operating profit slightly dropping. Despite challenges, Samsung C&T secured KRW 18 trillion (US$12.5 billion) in new orders and aims for KRW 18.8 trillion (US$13 billion) in 2025. Key projects include a Qatar desalination plant and Türkiye motorway section. Future growth is expected in tech-driven projects, positioning Samsung C&T for stability and expansion.

Link:

Steel solutions spotlight:

Composite floor deck - Tata Steel UK
Special Moment Frame using Pos-H - POSCO

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