The construction sector and its dynamic building materials subsector in Galicia Photo source: www.clustergranito.com
Contents 1. 2. 3. 4. 5. 6. 7.
The construction sector at a glance The building materials sector Key figures International experience Some success cases SWOT International markets’ observatory. ECICII Project
1. The construction sector at a glance • Construction is a key sector for the Galician economy • Construction services in Galicia include activities like :
Building services Civil engineering Specialized constructions services Real estate services Technical services: architecture, engineering, technical analysis and reports
Construction sector Gross value added (GVA) (% of Galician GDP) 12%
Construction sector. Employment (% of Galician Total) 10%
Source: IGE
10,10%
2010
9,60%
2011
2010
Besides, Galicia has a dynamic and strong building
2011
materials industry
Volume of construction services’ businesses in Galicia in 2011 (% of
total):
19%
Source: IGE
1. The construction sector at a glance
1. The building materials sector Subsectors and products
Sector main manufacturing activities include: wood and products of wood and cork coke and refined petroleum products rubber and plastic products other non-metallic mineral products basic metals
fabricated metal products furniture, other manufacturing Source: IGE
2. Key figures
Source: IGE
Building materials share of the total industrial production in Galicia (2011)
25% of total industrial production in 2011
3. International experience Manufacturing industry. Building materials exports. Galicia 2011
Source: Estacom
20%
80%
Other subsectors
Building materials
Destination
The UK was the 5th destination of the Galician building materials exportations in 2011 Source: Estacom
Portugal France Algeria United Estates of America United Kingdom Netherlands Germany Italy Morocco Belgium
Rank 1 2 3 4 5 6 7 8 9 10
Thousand â‚Ź 1.258.347,474 289.543,292 257.796,005 201.065,334 156.409,966 144.066,778 137.158,455 114.190,139 94.642,956 78.368,583
Strengths – – – – – – –
5. SWOT
Reasonable prices for quality Businesses specialization Adaptability to new global markets Qualified work force R&D and innovation: sector technology centres Business associations: wood cluster, granite cluster International recognition (2nd most important natural stone industry in Europe and 4th in the world)
Weaknesses – – – – –
Opportunities –
– – – – –
– –
Commercial relations with international markets (growing demand of developing countries like Brazil and Mexico) Subsector synergies and cooperation A common market (European Union) Labour market flexibility Excellent quality-price-design relation Excellent logistics by sea, land and air: 3 international airports; 2 main ports, and modern road infrastructures High capacity to supply building materials Institutional sales channel (CONTRACT)
Conservative national market Low public sector demand of construction services Private construction sector decline Unbalanced national offer/demand High global competence
Threats – – – –
National and global economic crisis Financial crisis and difficult credit access Aggressive low cost Low investment levels
6. International markets’ observatory. ECICII
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