The construction sector and its dynamic building materials

subsector in Galicia Photo source: www.clustergranito.com

Contents

1. The construction sector at a glance

2. The building materials sector

3. Key figures

4. International experience

5. Some success cases

6. SWOT

7. International markets’ observatory. ECICII Project

2010 2011

10,10%

12%

2010 2011

10%

9,60%

Construction sector Gross value added (GVA) (% of Galician GDP)

Construction sector. Employment (% of Galician Total)

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

Besides, Galicia has a dynamic and strong building materials industry

Sou

rce:

IGE

Sou

rce:

IGE

Volume of construction services’ businesses in Galicia in 2011 (% of

total): 19%

1. The construction sector at a glance

1. The building materials sector

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

Subsectors and products

Building materials share of the total industrial production in Galicia (2011)

2. Key figures So

urc

e: IG

E

25% of total industrial production in 2011

3. International experience

The UK was the 5th destination of the Galician building materials exportations in 2011

Sou

rce:

Est

aco

m

Source: Estacom

Destination Rank Thousand €

Portugal 1 1.258.347,474

France 2 289.543,292

Algeria 3 257.796,005

United Estates of America 4 201.065,334

United Kingdom 5 156.409,966

Netherlands 6 144.066,778

Germany 7 137.158,455

Italy 8 114.190,139

Morocco 9 94.642,956

Belgium 10 78.368,583

80%

20%

Other subsectors

Building materials

Manufacturing industry. Building materials exports. Galicia 2011

5. SWOT Strengths

Weaknesses

Threats Opportunities

– 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)

– Conservative national market – Low public sector demand of construction services – Private construction sector decline – Unbalanced national offer/demand – High global competence

– 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)

– National and global economic crisis – Financial crisis and difficult credit access – Aggressive low cost – Low investment levels

6. International markets’ observatory. ECICII

UNITED KINGDOM Golden Cross House 8 Duncannon Street Strand, London WC2N 4JF

Thank you!