BMI's Executive Summary

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Despite being a small nation in terms of size, Estonia boasts a thriving infrastructure sector. With growth of more than 12% in 2006, the Estonian construction industry has been an important contributor to the country's overall gross domestic product (GDP). BMI forecasts the industry to log average growth of about 6.5% during 2008-2012.

The country's entry into the European Union (EU) is likely to open up new opportunities for the construction industry. Estonian firms are among the most competitive in the Baltic region. At present, most projects revolve around energy, as well as residential and industrial construction. The year 2007 has also augured well for the construction industry; total domestic and foreign output of Estonia's construction enterprises increased 7% year-on-year (y-o-y) in Q207. The country also boasts a fastgrowing residential construction market. Low taxes, sound infrastructure and very little risk of political instability have made the country's business environment highly attractive. On the economic front, access to credit has improved, but inflationary pressures have been mounting. The economy is also exposed to high levels of external risk.

More than 3,000 companies operate in the Estonian construction space, but around 25% of the business is held by a handful of companies. The exodus of local players to foreign countries in search of better opportunities – given the limited scope for expansion within the country – is not a healthy sign. This may adversely affect local infrastructure development.

BMI forecasts moderately high long-term growth for the Estonian infrastructure sector. The industry is forecast to be worth EEK25.19bn (US$1.97bn) in 2012, contributing 7.39% of the total GDP. The industry's contribution to the country's national income is forecast to average about 6.8% during the forecast period. Future growth in the industry will depend on public sector investment on infrastructure development.

Contents

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Chapter 1 - Executive Summary

Chapter 2 - Industry Trends And Development

Market Overview

Estonia’s Economy In 2005-2006

Estonia’s Construction In Q106

Major Companies

Chapter 3 - Key Projects

Transport

Utilities

Tourism

Residential And Commercial Construction

Table: Estonia Major Infrastructure Projects

Chapter 4 - Business Environment

Introduction

Table: Emerging Europe Business Ranking

Business Attractiveness Rankings – Methodology

Regional Overview

Estonia: Business Environment Ranking

Economics – Long-term Risk

Politics – Long-term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 5 - SWOT Analysis

Estonia Infrastructure SWOT

Chapter 6 - Industry Forecast Scenario

Estonia Infra/Print Table

Risks

Chapter 7 - Macroeconomic Outlook

Table; Estonia Macroeconomic Data & Forecasts

Chapter 8 - Country Snapshot: Estonia Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

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 9 - Competitive Landscape

Table: Estonia Infrastructure Key Players

Merko Ehitus Group

Skanska EMV

FKSM

Eesti Ehitus

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, GDP, 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: