The industry is expected to remain subdued over the forecast period (2016-2020), albeit with a slight improvement.

1. Construction in Brazil - A Breakthrough
Progression: Ken Research

2. Ken Research has released report on the growth estimates of
Construction in Brazil, in the global market titled,
“Construction in Brazil, Key Trends and Opportunities to
2020". This report renders comprehensive market analysis on
the construction industry in Brazil involving the construction
industry’s growth prospects by market, project type and
construction activity, analysis of equipment, material and
service costs for each project type, the risks and assessments
to participants in the industry, profiles of the leading operators
and the data highlights of the largest construction projects.

3. This report taps on the historical (2011-2015) and forecast
(2016-2020) valuations of the construction industry,
segmentation by sector and by project type, breakdown of
values within each project type, by type of activity and by
type of cost and as well as the analysis of key construction
industry issues, including regulation, cost management,
funding and pricing.
Construction Industry: Drivers and Constraints
The construction industry sector can be contemplated at the
core of world economy. It is the backbone of modernization.
By definition, the construction industry is that sector of the
national economy engaged in the preparation of land,
construction, alteration and repair of buildings, structures
and other real property.

4. Thus, the industry is mainly urban based. With this
reference, industry growth in Brazil was enumerated to be
inadequate during the review period from 2011-2015. The
precipitation was due to the economic recession, which
further contributed to the deterioration of the business
environment in addition to the weak investor confidence
which altogether resulted in the depletion of the
construction industry. Accordingly, during the same period,
the industry’s output value dwindled at a compound
annual growth rate of -0.32%. Moreover, the large
quantitative and qualitative infrastructure deficiencies
resulting from the chronic underinvestment in
construction of infrastructure in the last decade represent
one of the main obstacles to economic growth and create
an urgent need for action.

5. Despite these shortcomings for the construction industry
growth, it has been anticipated to grow with nominal
improvement. Although the economic recession is predicted
to prevail until 2017, during which the industry’s growth will
remain impeded. The recovery and minimal improvement
phase will begin from 2018 subsidized by a gradual recovery
in economic conditions succeeding improvements in investor
and consumer confidence. The drivers also include positive
socio-demographic trends, rising middle-class population,
large housing shortage estimated at over 5mn units in 2014
and underserved demand for modern non-residential
buildings. To regenerate the economic growth, the
government has made efforts through incorporating flagship
programs like ‘My House, My Life’, the Logistics Investment
Program, Plano Decenal de Energia 2024 (PDE 2024)

6. and the National Education Plan which are anticipated to boost
the industry's growth over the forecast period of 2014-2024.
There are several working examples of the Brazilian
government’s efforts as well. For example, privatization being
considered as a means to stimulate economic growth, has been
a major opportunity following which it introduced Projeto
Crescer (Project Growth), an infrastructure privatization program
aimed at stimulating private sector investment, anticipated to
uplift the construction industry over the forecast period, in
September 2016. The Chinese government is also expected to
invest in infrastructure, energy, manufacturing and mining
projects. In addition, as a part of the new energy plan PDE 2024,
the Ministry of Mines and Energy revised the country's solar
energy targets as compared to the target planned for 2023, in
January 2016.

7. The initial target includes producing 3,500MW of solar power
by 2023 while the new target includes generating 7,000MW of
solar energy by 2024.
Scope
Construction Industry can thus be reckoned as a flourishing
industry in the forecast period if not now for the Brazilian
economy complemented with the continuation of the
developmental process. Hitherto, the decelerating economy,
stubbornly high inflation and restricted credit supply coupled
with slowing domestic demand stemming from record-low
consumer and investor confidence are all affecting the
development of the Brazilian construction sector but despite
these existing economic woes, political turbulence and
concerns, Brazil's building industry showed up in an eminent

8. form at Feicon Batimat in 2016, one of Latin America's largest
annual construction trade events and is relentlessly working to
improvise over its industry growth.
The key leaders identified to be working upon the improvement
of the construction industry include the Odebrecht S.A., The
CCR Group, Cyrela Brazil Realty SA Empreendimentos e
Participacoes, Construtora e Incorporadora SA, and Gafisa SA.
Key Topics Covered in the Report:
Brazil Construction Industry Research Report
Brazil Construction Industry Trends
Brazil Construction Market Forecast
Global Construction Industry Research
Brazil Commercial Construction Industry

9. Brazil Residential Construction Market
New Construction Projects Brazil
Brazil Construction Equipment Market
Brazil Construction Industry Competition
For more coverage click on the link below:
https://www.kenresearch.com/manufacturing-and-
construction/infrastructure/construction-brazil-key-trends-
opportunities/65442-97.html
For related links:
https://www.kenresearch.com/manufacturing-and-
construction/infrastructure/construction-switzerland-key-
trends-2019/3439-97.html

10. https://www.kenresearch.com/manufacturing-and-
construction/infrastructure/construction-argentina-key-
trends-2019/3440-97.html
https://www.kenresearch.com/manufacturing-and-
construction/infrastructure/construction-mexico-key-
trends-2019/3441-97.html
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Ken Research
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Ankur@kenresearch.com
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