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(...Continued from page 37) and suppliers also play a key part in the overall makeup of the construction industry. Generating more than £40 billion annually to the UK economy, many of these companies are world leaders and in excess of £5 billion of construction products and materials are exported out of the UK every year.

Despite this success, UK firms cannot rest on their laurels. Domestic publicsector cuts have forced many firms to focus on opportunities in emerging markets. The developed world’s share is expected to sink from 65 per cent to just 45 per cent, according to the Global Construction 2020 report by Global Construction Perspectives. As the economies of Brazil, Russia, China and India – where Balfour is helping develop Mumbai’s metro and Delhi’s airport – continue to develop at phenomenal rates, new markets will prove increasingly seductive for UK construction firms.

OFF THE BEATEN PATH

The oil-rich and fast-growing nations of Angola and Nigeria, for instance, both have significant infrastructure requirements combined with a low construction skills base, while Vietnam has greatly benefited from international investment in recent years and has aspirations to emulate the success of neighbouring China. Such is the extent of investment that construction consultant Davis Langdon places Vietnam as the world’s fourth fastest-growing construction market, with spending within the sector expected to hit US$1.4 billion by 2015.

In South America, Brazil’s population is growing at 2m a year and a ‘new’ middle class of some 20m is demanding improved housing and infrastructure. The country will host the 2014 World Cup and 2016 Olympics, which UK Trade & Investment estimates requires 80 projects, positioning Brazil as one of the greatest markets for UK firms. While Halcrow, Balfour Beatty and Mott MacDonald have a presence there, Brazil remains untapped for many UK companies.

Closer to home, Turkey is predicted to become one of Europe’s largest economies by 2050. In its 2009 report, Building Turkey: Opportunities for the UK Construction Sector, UK Trade & Investment highlights a plethora of infrastructure, regeneration and tourism projects, plus the construction of around 600,000 homes. “We’ve been finding very strong interest in British firms forming joint ventures with Turkish contractors,” says Graham Hand, chief executive of British Expertise. “Turkish contractors bring a value-for-money proposition, but British firms can supply a more sophisticated design aspect.” Moreover, Dominic James, also of British Expertise, suggests UK-Turkish partnerships could provide a catalyst for UK firms to tap into Central Asia: “There’s a thirst for knowledge about these countries and how to get into them,” he says. “We’re seeing increasing stability there and good governance is gradually spreading.”

With investment from the European Bank for Reconstruction and Development into the region, the likes of Uzbekistan, the Kyrgz Republic, Tajikistan, Turkmenistan and Mongolia are benefiting from 40 projects a year worth US$300m. James recommends working with a UK Trade & Investment adviser “who can go through your company’s balance sheet and work out whether it makes sense.”

While emerging markets offer a number of prospects, India remains and will continue to be a major opportunity for UK firms. “With a massive infrastructure requirement that needs to be addressed urgently in order to sustain the levels of economic growth and cope with increasing migration to the cities, India plans to invest some US$500 billion in its infrastructure to 2012 and double this (Continued on page 39...)