Prepared for Daniel L. | Delivered March 25, 2020
Scandinavia Construction IRR
To gain an understanding of the IRR of residential construction companies in the Scandinavian (Nordic) countries of Sweden, Norway, Finland, and Denmark.
Construction companies in Sweden are some of the
world's best companies and they use innovative and efficient techniques
The construction market in Sweden is "
competitive and consolidating
" with many of the larger companies buying out the smaller ones.
Construction companies in Sweden are
, especially in the real estate and housing area.
four leading construction companies
in Sweden, three of them are in the real estate segment (
, NCC, and JM). These four companies make up
of the total market and the three real estate companies made over $75 billion Swedish kronor in 2016.
potential for foreign companies
in the Swedish market if they offer innovative techniques and new materials, as Swedish firms are keen on these areas.
The Norwegian construction industry saw a growth of
4.6% and 3.9%
in 2017 and 2018, respectively.
The total revenue for the industry in 2017 was
US$69.4 billion and in 2018 it was US$72.1 billion
. The rise in construction was due to transport infrastructure, energy, and housing construction.
It is projected the industry will have an average growth of
between 2019 and 2023.
Global Information, Inc.
conducted its research study it found residential construction was the largest portion of Norway's construction market, making up 43.4% of the total revenue of the industry in 2018.
The research projected that residential construction will account for
of the total market by 2023.
, in 2016 the top 5 housing constructors in Norway were
, Blink Hus, OBOS, and
The Danish construction industry grew
between 2013-2017. The growth was attributed to government/private sector investments and the residential construction segment.
The industry is expected to grow between 2018 and 2022 with the government planning to invest
into the country's infrastructure.
Danish construction industry's output value is expected to
between 2018 and 2022.
's study projected the residential district to still be the top segment in the industry and is expecte to own 42.7% of the industry's total value in 2022. This is
to the country's rising population and developments in regional areas.
three largest construction companies
(buildings) in Denmark are Ncc Danmark, A.
Finland's construction industry grew from 2015 to 2016, following a
growth from 2013 to 2014.
forecasts that the industry will continue to grow because of investor confidence that is expected to help with residential and commercial projects.
The industry will potentially see a boost with Finland implementing the
General Government Fiscal Plan for 2017-2020
that was expected to help with infrastructure.
The CAGR is expected to be
for the total output of the industry from 2017-2021.
is expected to grow during this time as the government seeks to lessen the gap between housing demand and supply. Residential construction is expected to be the main segment and account for
of total output in 2021.
is Finland's largest residential construction company.