On the state of the building industry after the GFC and the Euro crisis

Main Article Content

Gerard de Valence
Göran Runeson

Abstract

There has been an intense debate in the media and among academics on how the great financial crisis has affected the global economy, and how the effects have differed in different regions of the world. This survey was designed to establish to what extent the building industry has been affected by the GFC and the Euro crisis. Over the last months we have asked senior academics and executives in construction businesses what has happened up to now in their region, what will most likely happen in the near future and in the long term. The answer is that in developed economies the effect has been a substantial downturn as finances have dried up while in developing economies in most regions, demand has been sustained due to population growth with ever increasing needs for residential building and infrastructure. While there is some apprehension about the potential effects of the Euro crisis deepening, no-one seems really worried. In the long term there is an agreement, in developed and developing countries alike, that current business models do not work and that the industry has to reinvent itself to be sustainable.

Article Details

How to Cite
de Valence, G., & Runeson, G. (2011). On the state of the building industry after the GFC and the Euro crisis. Construction Economics and Building, 11(4), 102-113. https://doi.org/10.5130/AJCEB.v11i4.2438
Section
Viewpoints (Peer reviewed)