November constructsteel newsletter

Construction market trends

United States

X Values Permits (LHS, SAAR Millions) Output (RHS, SAAR USD Millions)
Jan-19 1.261 516545
Feb-19 1.287 516241
Mar-19 1.305 517830
Apr-19 1.311 523135
May-19 1.347 529067
Jun-19 1.315 541113
Jul-19 1.352 552933
Aug-19 1.489 559944
Sep-19 1.474 563875
Oct-19 1.525 567630
Nov-19 1.527 580119
Dec-19 1.451 586635
Jan-20 1.507 596241
Feb-20 1.442 606421
Mar-20 1.358 615959
Apr-20 1.066 596264
May-20 1.26 584502
Jun-20 1.338 590679
Jul-20 1.546 611092
Aug-20 1.529 641265
Sep-20 1.624 663219
Oct-20 1.613 684421
Nov-20 1.714 702989
Dec-20 1.744 725893
Jan-21 1.883 744621
Feb-21 1.715 737306
Mar-21 1.732 755629
Apr-21 1.738 769180
May-21 1.681 781138
Jun-21 1.657 792046
Jul-21 1.652 807694
Aug-21 1.77 811116
Sep-21 1.625 821300
Oct-21 1.719 830846
Nov-21 1.766 855289
Dec-21 1.913 884297
Jan-22 1.915 912064
Feb-22 1.86 937491
Mar-22 1.879 956267
Apr-22 1.835 970813
May-22 1.712 980391
Jun-22 1.745 955849
Jul-22 1.719 930578
Aug-22 1.542 914591
Sep-22 1.613 896797
Oct-22 1.56 884161
Nov-22 1.402 869624
Dec-22 1.4 859697
Jan-23 1.443 855073
Feb-23 1.62 847449
Mar-23 1.493 847144
Apr-23 1.47 844688
May-23 1.532 861971
Jun-23 1.493 864826
Jul-23 1.501 874187
Aug-23 1.578 876578
Sep-23 1.515 877629
Oct-23 1.534 877566
Nov-23 1.508 879069
Dec-23 1.53 886430
Jan-24 1.508 904235
Feb-24 1.563 914102
Mar-24 1.485 911890
Apr-24 1.44 920253
May-24 1.399 941231
Jun-24 1.454 912102
Jul-24 1.406 909800
Aug-24 1.470 912186
Sep-24 1.425 913632

U.S. construction spending edged up in September driven public investment but private investment was flat; data centres up.

Private residential output was up 0.2% m-o-m (4.1% y-o-y) in September; Building permits were down -3.1% m-o-m (-5.9% y-o-y). Private non-residential output was down -0.1% m-o-m (3.5% y-o-y).

Architecture Billings Index (ABI) stable in September at 45.7 (< 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

China’s residential property sector shows signs of improvement; transactions in major cities are rising after recent measures introduced to boost demand.

The 3-month moving average y-o-y, year-to-date floor space started has declined by -19% in September; floor space sold was down -11.6% y-o-y.

Europe

X-values PMI (LHS) Output (RHS, %, y-o-y)
Jan-19 50.6 0.5
Feb-19 52.6 6.1
Mar-19 52.2 6.6
Apr-19 52.1 3.2
May-19 50.6 2.7
Jun-19 50.8 1.6
Jul-19 50.6 1.3
Aug-19 49.1 1.0
Sep-19 50.5 0.5
Oct-19 50.7 0.9
Nov-19 50.6 0.8
Dec-19 51.3 -1.3
Jan-20 51.9 4.7
Feb-20 52.5 0.1
Mar-20 33.5 -15.4
Apr-20 15.1 -30.3
May-20 39.5 -11.2
Jun-20 48.3 -4.5
Jul-20 48.9 -3.4
Aug-20 47.8 -0.5
Sep-20 47.5 -2.5
Oct-20 44.9 -2.1
Nov-20 45.6 -0.7
Dec-20 45.5 1.4
Jan-21 44.1 -4.9
Feb-21 45.0 -5.7
Mar-21 50.1 17.7
Apr-21 50.1 42.6
May-21 50.3 12.7
Jun-21 50.3 5.1
Jul-21 49.8 3.3
Aug-21 49.5 0.0
Sep-21 50 3.6
Oct-21 51.2 4.2
Nov-21 53.3 2.7
Dec-21 52.9 -0.2
Jan-22 56.6 6.2
Feb-22 56.3 9.3
Mar-22 52.8 3.9
Apr-22 50.4 3.3
May-22 49.2 3.7
Jun-22 47 2.9
Jul-22 45.7 2.1
Aug-22 44.2 3.3
Sep-22 45.3 1.2
Oct-22 44.9 1.6
Nov-22 43.6 1.7
Dec-22 42.6 0.1
Jan-23 46.1 0.7
Feb-23 47.6 1.7
Mar-23 45.0 0.1
Apr-23 45.2 1.1
May-23 44.6 1.3
Jun-23 44.2 1.1
Jul-23 43.5 2.6
Aug-23 43.4 1.5
Sep-23 43.6 1.7
Oct-23 42.7 0.2
Nov-23 43.4 -0.1
Dec-23 43.6 2.5
Jan-24 41.3 0.2
Feb-24 42.9 -1.5
Mar-24 42.4 -0.5
Apr-24 41.9 -1.1
May-24 42.9 -2.6
Jun-24 41.8 -1.4
Jul-24 41.4 -2.2
Aug-24 41.4 -1.8
Sep-24 42.1
Oct-24              43.0

Eurozone’s construction sector continues to remain 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 6.1
Aug-24 -1.6
Sep-24 2.0

India’s underlying core industries continue to grow.

The weighted average of eight core industries’ output rose by 6.3% y-o-y in May; production of steel was up 7.6%, and cement was down -0.8% y-o-y.

 

Special topic

The life cycle methodology for steel construction

The construction industry today faces critical challenges related to environmental sustainability and resource management. In line with the European Green Deal and the Paris Agreement, the EU has set a goal to achieve climate neutrality by 2050. Buildings within the EU are responsible for 36% of CO2 emissions and 40% of energy consumption, largely from fossil fuels. The environmental impact of buildings begins well before their use, spanning from material extraction to disposal.

To address these impacts, applying Life Cycle Assessment (LCA) across a building’s entire life—from construction to demolition—offers a pathway to enhance efficiency and sustainability. This Position Paper explores LCA’s role in supporting decarbonisation, focusing on steel as a primary material. It highlights the European steel industry’s efforts to meet climate goals through digitisation, efficiency improvements, and the circular economy. Scrap-based production benefits from renewable energy sources, while ore-based methods are advancing with hydrogen and alternative technologies to reduce reliance on traditional carbon inputs.

The document also emphasises the Italian steel sector’s commitment to environmental best practices, advocating for recovery, reuse, and recycling as essential to the industry’s ecological transition. Through an analysis of the construction value chain, it demonstrates the benefits of circularity, material quality, and industrialised construction technologies, underscoring the environmental and social gains achievable throughout a building’s life cycle.

Download

Technical trends

New opportunities: Capturing value from CBAM regulation

The European Union’s Carbon Border Adjustment Mechanism (CBAM) introduces both opportunities and challenges across various sectors. By requiring importers of certain carbon-intensive products to purchase certificates reflecting the carbon content, CBAM aims to curb emissions leakage and level the playing field for EU-based businesses. Companies that proactively reduce emissions can benefit from lower carbon credit costs and capture market share from higher-emitting competitors, potentially boosting earnings significantly. Strategies to mitigate CBAM costs include enhancing carbon transparency, material substitution, waste reduction, and adopting circular business models. The regulation will initially impact sectors like cement, steel, and aluminium, with significant cost increases projected for these materials. In the short term, EU-based companies with cross-border supply chains will face the greatest challenges, while non-EU companies with lower carbon footprints may gain competitive advantages. Long-term, global alignment on carbon regulations is expected, necessitating agile decision-making and robust carbon tracking mechanisms.

Full article

Construction news headlines

construction market and regulations

Europe:

The UK construction sector experienced its fastest growth in nearly two-and-a-half years, with the PMI rising to 57.2 in September from 53.6 in August. Civil engineering led the growth, followed by commercial building and housebuilding. New orders surged, boosting employment and input purchasing, despite cost pressures. Input prices increased sharply, driven by higher raw material and wage costs. Business optimism remained high, supported by lower interest rates and strong infrastructure pipelines. The upcoming budget will be crucial for future development activity.

Link

Europe:

UK house prices rose for the third consecutive month in September, with Halifax’s index showing a 0.3% monthly increase to an average of £293,399. Annual growth hit 4.7%, the highest since November 2022, reflecting a recovery from weaker prices last year. Improved mortgage affordability, driven by anticipation of interest rates falling, has boosted buyer confidence and mortgage agreements. Experts predict modest price growth moving forward, with housing costs remaining a challenge. The market’s health is underscored by rising transactional volumes, hitting over 100,000 in August.

Link

Europe:

In September 2024, Catalonia’s cement consumption slightly decreased by 0.6% year-on-year, reaching 151,157 tons, signalling market stabilisation after a decline commencing in November 2022. From January to September 2024, a 4.3% drop in consumption was observed compared to 2023, totalling 2.1 million tons. Nonetheless, cement production in September witnessed a 15% rise, whereas exports marginally increased by 0.3%. The industry is emphasising decarbonisation, with substantial investments in sustainability projects.

Link

Europe:

Northern Ireland’s housebuilding has significantly decelerated, with completions dropping to 2,778 in the first three quarters of 2024, down from 5,373 in 2023. Infrastructure constraints, particularly involving NI Water’s funding limitations, are major bottlenecks. Regions like Belfast are notably impacted. If this trend persists, housing shortages will worsen, especially in urban centres.

Link

North America:

Project abandonments in the construction industry fell by 49.8% in September, driven by lower interest rates and economic optimism. Despite a 16.7% rise in the Project Stress Index, reflecting increased projects on hold, the trend remains historically normal. The private sector saw a 9.4% drop in abandonments and a 6.8% decrease in projects on hold year-over-year. Public projects also improved, with a 17.6% drop in hold and a 5.5% reduction in abandonments. Experts attribute these trends to positive economic outlooks and reduced borrowing costs.

Link

North America:

The Dodge Momentum Index (DMI) reported a 4.2% decline in nonresidential construction planning for September, driven by slowdowns in office, warehouse, and retail projects. Commercial planning fell 7.8%, despite a 5.2% rise in institutional planning, which saw growth in education, healthcare, and recreational sectors. Notable projects entering planning include the $390 million Project Nova data center in Minnesota and the $215 million Phase 2 of the Kentucky Exposition Center. Despite the dip, the DMI remains robust, with a 21% year-over-year increase. Financing improvements are expected to boost planning activity by mid-2025.

Link

North America:

The construction industry is seeing a rebound in backlog, supported by the Federal Reserve’s interest rate cut last month. After a dip to 8.2 months in August, work on builders’ books rose to 8.6 months in September, excluding the Northeast. Despite this, overall backlog remains lower than last year. However, falling material prices and renewed contractor optimism in September hint at a potential industry recovery, aligning with the Fed’s “soft landing” policy goals.

Link

Middle East:

Saudi Arabia’s construction output is projected to grow at an annual average rate of 5.1% from 2025 to 2028, driven by significant public and private investments in oil and gas projects, according to Research and Markets. Saudi Aramco plans to launch 99 projects between 2024 and 2026, including major investments in oil, gas, and petrochemicals. The construction industry is expected to grow by 4.6% in 2024, bolstered by energy, tourism, and industrial projects. Enhanced credit facilities for MSMEs and increased FDI are also key drivers of this growth.

Link:

Australia:

Australia’s construction sector is set for significant reforms as industry leaders collaborate to develop a comprehensive Building and Construction Industry Blueprint. Announced during the National Construction Industry Forum (NCIF), the Blueprint aims to foster sustainable change, focusing on industry culture and key challenges. It will outline a strategic work plan, with development targeted within six months.

Download:

Building materials and construction technologies

Europe:

MCS has unveiled software enhancements designed to optimise large-scale equipment rental operations. Key features include phased delivery scheduling for efficient order management and a comprehensive check-in process that categorises returned items, applying specific charges for damages. Real-time equipment availability tracking and mobile-friendly features, such as photo capturing and digital signatures, further facilitate on-site tasks. These upgrades aim to digitise and streamline workflows, bolstering operational efficiency for rental businesses.

Link

North America:

PCL Construction has partnered with HammerTech to enhance jobsite safety and efficiency through advanced safety intelligence software. Starting next year, HammerTech’s platform will replace PCL’s proprietary safety software, benefiting up to 50,000 workers daily across 1,200 projects. The software offers improved data management, reporting, and decision-making, aiming for a “zero-incident” future. This move follows PCL’s trend of adopting innovative technologies to improve safety and operational efficiency in construction projects.

Link

North America:

MIT researchers have developed 3D-printed glass bricks with crush strength comparable to concrete, using recycled glass bottles. The process involves melting crushed glass into a printable material, which is then formed into interlocking bricks. Inspired by circular construction principles, these bricks can be reused or reprinted, reducing embodied carbon. This innovation showcases the potential of glass as a structural material, pushing architectural boundaries and promoting sustainability in construction.

Link

North America:

Moog Construction’s CrewMate, a semi-autonomous lift-assist vehicle, successfully completed a field trial near Niagara Falls. The trial demonstrated its capability to navigate steep, uneven terrain and assist workers in installing heavy PV panels. CrewMate autonomously followed workers, using lift-assist technology to handle 83-pound panels, thereby reducing physical strain and potential injuries. This innovation promises to boost productivity, minimise panel breakage, and meet the growing demand for solar PV installations. Further large-scale trials are planned.

Link

Middle East:

Israeli tech firm Buildots launches Dot, an AI assistant for site managers, offering real-time insights on project status. Dot integrates AI and computer vision to process data, enabling users to track progress and resolve issues using natural language queries. Powered by OpenAI’s GPT models, Dot translates complex queries, enhancing decision-making and resource allocation. This innovative tool transforms project management by contextualising data for users of varying expertise.

Link

Construction sector players

Europe:

Clancy Group Holdings Ltd reported a 13% increase in turnover to £378.5m and a 55% rise in pre-tax profit to £20.9m for the year ending March 2024. The robust financial performance, supported by a £34.2m cash position, enabled £11.2m investment in new plant and technology. With a secured order book of £1.5bn and expanded work in the water and energy sectors, Clancy looks well-positioned for future growth.

Link

Europe:

Reds10, a modular building specialist, continues its impressive growth with a 70% revenue increase last year. The firm achieved a turnover of £142.5m in 2024, almost fourfold since 2021. Reds10 forecasts £160m in 2025 and targets £600m by 2027, maintaining a strong balance sheet and a secured £300m pipeline. As profits align with revenue growth, Reds10 is to focus on driving industry transformation, emphasising innovative approaches and sustainability.

Link

Europe:

Cimpor has announced a €360 million decarbonisation strategy for its plants in Alhandra, Souselas, and Loulé, targeting carbon neutrality by 2050. Investment highlights include €110 million for alternative fuels and €70 million for facility upgrades at Alhandra, significantly reducing CO₂ emissions by 190,000t/year. The Souselas plant will produce calcined clays, cutting emissions by 70,000t/year. CEO Cevat Mert stressed the importance of government support to enhance environmental and sustainability efforts.

Link

Europe:

Cemex and Linde have been awarded €157 million by the EU Innovation Fund for a carbon capture, utilisation, and storage (CCUS) project at the Rüdersdorf cement plant. The initiative will capture 1.3 million tons of CO₂ annually, aiming for full decarbonisation by 2030 using Linde’s HISORP(R) technology. This aligns with Cemex’s Future in Action climate strategy, showcasing a breakthrough in cement industry decarbonisation.

Link

Europe:

Holcim’s Q3 results show a recurring operating profit of €1.6bn, despite a 3% sales decline to €6.84bn. Over nine months, sales reached €19.1bn, with the cement business contributing €9.9bn. Holcim continued expanding with six acquisitions in Q3, totalling 17 in 2024. Strong fundamentals were reported in North America, Holcim’s second-largest market, involving 150 infrastructure projects, indicating promising future profitability and market strength.

Link

North America:

Caterpillar’s Q3 revenue fell 4% due to diminished construction demand across key markets like North America, Europe, and Asia Pacific. Construction-related sales plunged 7% as dealers reduced purchases. Price realisation is expected to keep trending lower into Q4. Despite these short-term challenges, Caterpillar is optimistic about the future, citing substantial unspent Infrastructure Investment and Jobs Act funds likely to boost infrastructure demand and stabilise financial performance in upcoming quarters.

Link

North America:

Databank secured $2 billion to build three data center campuses in Dallas, Virginia, and Atlanta, boosting capacity by 850 megawatts. These projects address growing AI and cloud capacities amid industry challenges. Dallas will feature an 8-building, 480-megawatt campus by 2026, while Virginia and Atlanta’s campuses will be operational by 2027, led by AECOM Tishman and Brasfield & Gorrie respectively. This expansion aligns with rising demand for tech infrastructure across the US.

Link

Asia:

Siam Cement Group (SCG) plans to implement cost-cutting measures of US$147 million in 2025 following a stark 75% drop in nine-month profit to US$202 million, despite stable nine-month revenues of US$11.2 billion. The EBITDA also saw a 10% decline. SCG’s strategy includes boosting liquidity through asset sales, enhancing production efficiency, and suspending non-profitable businesses. A modest 3% revenue rise is anticipated for 2025 due to ongoing economic and market challenges.

Link

Asia:

Larsen & Toubro won the contract for Agra Metro’s Line 2, covering a 15.1km elevated stretch with 14 stations. The project, valued at ₹ Cr 1,000-2,500 (USD$119-297 million), includes architectural, electrical, and mechanical works, with a stringent 30-month completion timeline. This aligns with L&T’s strategic urban infrastructure development goals, showcasing its engineering and execution prowess. The project enhances Agra’s metro network, supporting mobility for its two million residents.

Link

Asia:

Mitsubishi UBE Cement (MUCC), alongside seven companies, will survey a carbon capture and storage (CCS) project for the Southern Offshore Malay Peninsula, commissioned by JOGMEC for the 2024 financial year. The project will study the CCS value chain from CO₂ captured in Kyushu, Chugoku, and Kinki regions, to its geological storage offshore. MUCC will manage the CCS processes at its Ube plant, contributing to advanced CCS initiatives in the cement industry.

Link

constructsteel annual conference 2024

On 23 October in Charlotte, NC, industry leaders gathered for a successful event focused on Positioning Steel in Construction. Attendees explored key insights on the future role of steel in the industry and celebrated excellence at the second edition of the constructsteel Awards.  Discover the event highlights and view the photo gallery here.

Knowledge partner: