BMI's Executive Summary

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The Czech Republic boasts a vibrant construction industry, which has been a key driver of the country's growth. Valued at US$9.45bn in 2006 and having recorded a year-on-year (y-o-y) growth of 6.6% during the year, the construction industry is currently undergoing a high-growth phase that started in 2002-2003.

This report forecasts the industry to grow at an average rate of approximately 8% during 2008-2012. With some support from European Union (EU) funds, the state has been investing in infrastructure development on a large scale. Furthermore, the government has embarked on a privatisation drive, channelling the generated proceeds towards infrastructure growth. A stable business environment has also made the Czech Republic an attractive foreign-investment destination. The nation also boasts one of the longest rail and road networks in central Europe. The country is fast becoming a hub for automobile manufacturing. In addition, the recent tourism boom in Prague has spurred the development of hotels.

Housing construction in the country is also set to benefit from the growing availability of mortgage facilities and constantly improving living standards. Major projects planned or currently under way include the construction of a new airport near Prague, reconstruction work at the Pardubice airport, South Korean Hyundai's automotive plant in Nosovice, and state-led highway and road development programmes. However, the impressive performance of the country's infrastructure sector is somewhat marred by high levels of corruption and corporate taxation. Further, safety norms and standards imposed by the EU have increased construction costs in the country. The country's labour market infrastructure could also do with some improvement.

The Czech construction industry is expected to reach a value of CZK471.34bn (US$20.91bn) in 2012, contributing 10.49% to the country's gross domestic product (GDP). Strong foreign direct investment (FDI) inflows are likely to continue in the spheres of industrial and commercial construction. Increased consolidation may be seen in the industry in coming times.

Contents

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Chapter 1 - Executive Summary

Chapter 2 - Industry Trends And Developments

Market Overview

Czech Republic Economy In 2006

Czech Republic Construction Industry In 2006

Major Companies

Some Recent Investment Initiatives

Chapter 3 - Key Projects

Transport

Utilities

Residential And Commercial Construction

Table: Czech Republic – Major Infrastructure Projects

Introduction

Table: Emerging Europe Business Rankings

Business Attractiveness Rankings – Methodology

Regional Overview

Czech Republic: Business Environment Ranking

Economics – Long-term Risk

Politics – Long-term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 - SWOT Analysis

Czech Republic Infrastructure Industry SWOT

Czech Republic Political SWOT

Czech Republic Economic SWOT

Czech Republic Business Environment SWOT

Chapter 5 - Industry Forecast Scenario

Table: Czech Republic Infrastructure – Historic Data & Forecasts

Risks

Chapter 6 - Macroeconomic Outlook

Table: Growth And Output

Chapter 7 - Country Snapshot: Czech Republic Demographic Data

Section 1: Population

Table: Demographic Indicators

Table: Rural/Urban Breakdown

Section 2: Healthcare

Table: Healthcare--Vital Statistics

Table: Healthcare--Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Table: Wages per year

Chapter 8 - Competitive Landscape

Tabel: Czech Republic-- Key Players

Chapter 9 - Company Monitor

Skanska CZ

Metrostav

PSJ Holding

VA TECH EZ

Chapter 10 - BMI Forecast Modelling

How we generate our Industry Forecasts

Construction Industry

Sources

Chapter 11 - Appendix: Regional Demographic Data

Wages (ave labour force per annum), US$ PPP

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, US$bn

Competitive Landscape for Europe Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of European Infrastructure Sources

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BMI's European Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, infrastructure industry associations, chambers of commerce and company reports. Information sources include: