Veidekke

Veidekke's Economic Activity Report: Better prospects in a more stable market

Uncertainty is decreasing in the Scandinavian residential market, and

developments now indicate a more stable, but still attractive contracting and

property market going forwards.

After a couple of record years with unusually high activity in the Scandinavian

construction and civil engineering industry, growth has levelled off and the

market now appears to be stabilising at a high level. Veidekke expects annual

growth of 2% in the Scandinavian construction and civil engineering market

towards 2020.

"Demand in the Scandinavian contracting market in general is good, and several

parts of the market that were in a downturn are now showing signs of recovery.

There is good demand for non-residential buildings, and the tendencies are now

more positive in the residential market too. Growing market confidence among

buyers, combined with a more balanced market, will provide a better starting

point for new projects," says Kristoffer Eide Hoen, Director of Analysis in

Veidekke ASA. He also points to healthy growth in the civil engineering market

in Sweden and Norway, with many large transport infrastructure projects under

way and growing demand from the energy and water and wastewater sectors.

The report also highlights macro trends that will affect the contracting

industry from 2020 onwards.

"In the longer term, some major demographic changes will have an impact on the

product mix and competition focus in the contracting industry: More seniors and

fewer younger people will entail new needs in the health and care sector and may

also change demand in the housing market. At the same time, there will be

tougher competition for workers, in an industry that is already facing capacity

challenges. However, these are long-term trends that we are aware of and taking

into account," says Kristoffer Eide Hoen.

Our full analysis for the Scandinavian construction and civil engineering market

can be read on veidekke.com

For press photos, see www.flickr.com/photos/veidekke, for more information,

contact:

Kristoffer Eide Hoen, Director of Analysis, Veidekke ASA, tel. (+47) 976 75 434

Subscribe to notices from Veidekke (http://veidekke.com/no/borsmeldinger/abonner

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Veidekke is one of Scandinavia's largest construction and property development

companies. The company undertakes all types of building construction and civil

engineering contracts, develops residential projects, maintains roads, and

produces asphalt and aggregates. The company is known for its involvement and

local knowledge. Its annual turnover is approx. NOK 32 billion, and around half

of its 8,000 employees own shares in the company. Veidekke is listed on the Oslo

Stock Exchange and has always posted a profit since it was founded in 1936.

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