 Page 2
Table 8: How the Top International Contractors Shared the 1988 Construction Export Market (in billions of U.S. dollars except as noted) Region of Contract Award Foreign Awards United States Mideast Asia Africa Europe Canada Latin America Nationality of Contractor Firms Dollar Percent Dollar Percent Dollar Percent Dollar Percent Dollar Percent Dollar Percent Dollar Percent Dollar Percent Value Share Value Share Value Share Value Share Value Share Value Share Value Share Value Share United States 36 25.9 27.5 5.6 322 4.5 22.0 1.4 13.9 8.8 45.4 3.1 47.7 2.5 33.3 Japan 38 11.6 12.3 2.6 20.5 1.7 9.8 5.6 27.3 0.5 5.0 0.7 3.6 0.1 1.5 0.4 5.3 Korea 7 1.4 1.5 0.9 5.2 0.4 2.0 0.1 1.0 Europe 131 49.2 52.3 8.4 66.1 8.7 50.0 8.5 41.5 6.7 66.3 9.6 49.5 3.3 50.8 4.1 54.7 Italy 41 13.3 14.2 0.4 3.1 5.4 31.0 2.1 10.2 2.0 19.8 1.9 1.5 20.0 France 13 11.1 11.8 1.5 11.8 0.9 5.2 1.7 8.3 1.8 17.8 2.0 10.3 2.3 35.4 0.9 12.0 United Kingdom 12 9.4 10.0 3.1 24.4 0.4 2.8 13.7 0.4 4.0 1.1 5.7 0.8 12.3 0.8 10.7 Germany 18 8.1 8.6 22.0 0.5 2.9 1.3 6.3 1.2 11.9 1.9 9.8 0.1 1.5 0.3 4.0 The Netherlands 8 1.6 1.7 0.1 0.8 0.2 1.1 0.2 1.0 0.1 1.0 0.8 4.1 0.2 2.7 Yugoslavia 7 1.0 1.1 0.4 2.3 0.1 0.5 0.2 2.0 0.2 1.0 0.1 1.3 Other Europe 32 4.7 5.0 0.5 3.9 0.9 5.2 0.3 1.5 1.0 9.9 1.7 8.8 0.3 4.0 Turkey 6 1.0 1.1 0.8 7.9 0.2 All other countries 32 4.9 1.7 13.4 0.5 1.5 7.3 0.6 5.9 0.1 0.5 0.5 6.6 All firms 250 94.0 100.0 12.7 100.0 17.4 100.0 20.5 100.0 10.1 100.0 19.4 100.0 6.5 100.0 100.0 Note: Percentages may not sum to 100 because of independent rounding. SOURCE: Based on McGraw-Hill, Engineering News-Record, July 13, 1989. 'Less than $50 million.
Asia is the source of most new engineering and construction work. In 1988, Japanese contractors remained formidable competitors in Asia, accounting for 27 percent of international construction work. U.S. contractors still managed to take a 22 percent slice of the highly competitive Asian international construction market. In fact, U.S. contractors increased their business in every foreign region in 1988. As shown in Table 9, they made their strongest percentage growth in Africa, where their awards doubled during the year. Increased awards in Europe accounted for the largest absolute growth ($3.7 billion), a 72 percent increase from 1987. Other markets showed strong advances as well. Awards in 1988 to U.S. construction firms doing business in Canada increased 85 percent from 1987. The weakest growth (12 percent) was in the Middle East, which until 1988 had led all other regions in dollar value of international contracts awarded.
Table 9: U.S. Construction Companies in Overseas Markets 1988 Percent Change 1987–88 Change 1982-88 Region of Award Firms Dollar value share Dollars Percent Dollars Percent Middle East 18 5.6 21.5 0.6 12.2 -12.8 -69.5 Africa 16 1.4 0.7 100.0 -1.5 -51.2 Europe 26 8.8 33.7 72.2 1.9 27.3 Asia 14 4.5 17.3 0.9 25.4 -4.4 -49.3 Latin America 31 2.6 10.1 0.5 24.8 -1.9 -41.7 Canada 22 3.1 12.0 1.4 84.6 -0.6 -15.2 Total 26.1 100.0 7.8 42.5 -19.2 -42.4 Note: Data are based on contract awards to 50 companies in 1988, 52 in 1987, 54 in 1986, 60 in 1985, 66 in 1984, 68 in 1983, and 77 in 1982. Calculations are based on unrounded data. SOURCE: McGraw-Hill, Engineering News-Record, April 19, 1984; April 18, 1985; April 17, 1986; April 16, 1987; April 14, 1988; and May 25, 1989.
International Engineering and Construction Progress in exporting will depend on factors both inside and outside the U.S. international engineering and construction industry. Among the more important of these factors are financing, technology and management capabilities, experience, and reputation. For construction projects that are labor intensive, and especially where local inexpensive labor is available, U.S. firms have little hope of capturing the market. For more technologically sophisticated projects, financial packaging becomes more important than price. U.S. companies are often unable to provide financial packages that are comparable to those offered by foreign national governmentassisted competition. Lack of such packages often means that the awards go abroad. In the face of these difficulties, U.S. firms hesitate to invest the money required to submit bids overseas and turn instead to the lucrative and more accessible domestic market. U.S. design and construction firms excel and are competitive, however, in complex projects for which the overriding factors are quality of design, construction, and construction management. During 1988, U.S. firms were very successful in winning contracts for petroleum refineries and petrochemicals projects that required advanced construction technologies and special expertise. xviii
Local subsidiaries, joint ventures, and acquisitions were very important in the U.S. design and construction firms 1988 international strategy. According to the 1989 "Competitive Assessment of the U.S. International Construction Industry” by the U.S. Department of Commerce, many host governments require foreign firms bidding on design and construction projects to enter into joint ventures with local firms. As part of their strategy, U.S. contractors may well consider seeking out Japanese financing for their work. In 1990, Japan may be the world's largest donor of economic assistance to developing countries. Japanese aid of about $10 billion a year could be an important source of financing for construction projects in those countries. If, as expected, Japan gradually unties its aid program, U.S. contractors could gain export opportunities through the use of Japanese financing. To accomplish this and to develop a position in the expanding domestic Japanese construction market, U.S. contractors should consider acquiring licenses in Japan, establishing branch offices in Tokyo, and entering into partnerships and joint ventures with Japanese design and construction companies. Japan's development spending is highest in a number of sectors in which U.S. design and construction companies are competitive suppliers. Preferred sectors now include power genera tion and transmission, pollution control, road and railway construction, telecommunications, manufacturing, and water resource management. CONSTRUCTION REVIEW Page 3Page 4
Table 8: How the Top International Contractors Shared the 1988 Construction Export Market (in billions of U.S. dollars except as noted) Region of Contract Award Foreign Awards United States Mideast Asia Africa Europe Canada Latin America Nationality of Contractor Firms Dollar Percent Dollar Percent Dollar Percent Dollar Percent Dollar Percent Dollar Percent Dollar Percent Dollar Percent Value Share Value Share Value Share Value Share Value Share Value Share Value Share Value Share United States 36 25.9 27.5 5.6 322 4.5 22.0 1.4 13.9 8.8 45.4 3.1 47.7 2.5 33.3 Japan 38 11.6 12.3 2.6 20.5 1.7 9.8 5.6 27.3 0.5 5.0 0.7 3.6 0.1 1.5 0.4 5.3 Korea 7 1.4 1.5 0.9 5.2 0.4 2.0 0.1 1.0 Europe 131 49.2 52.3 8.4 66.1 8.7 50.0 8.5 41.5 6.7 66.3 9.6 49.5 3.3 50.8 4.1 54.7 Italy 41 13.3 14.2 0.4 3.1 5.4 31.0 2.1 10.2 2.0 19.8 1.9 1.5 20.0 France 13 11.1 11.8 1.5 11.8 0.9 5.2 1.7 8.3 1.8 17.8 2.0 10.3 2.3 35.4 0.9 12.0 United Kingdom 12 9.4 10.0 3.1 24.4 0.4 2.8 13.7 0.4 4.0 1.1 5.7 0.8 12.3 0.8 10.7 Germany 18 8.1 8.6 22.0 0.5 2.9 1.3 6.3 1.2 11.9 1.9 9.8 0.1 1.5 0.3 4.0 The Netherlands 8 1.6 1.7 0.1 0.8 0.2 1.1 0.2 1.0 0.1 1.0 0.8 4.1 0.2 2.7 Yugoslavia 7 1.0 1.1 0.4 2.3 0.1 0.5 0.2 2.0 0.2 1.0 0.1 1.3 Other Europe 32 4.7 5.0 0.5 3.9 0.9 5.2 0.3 1.5 1.0 9.9 1.7 8.8 0.3 4.0 Turkey 6 1.0 1.1 0.8 7.9 0.2 All other countries 32 4.9 1.7 13.4 0.5 1.5 7.3 0.6 5.9 0.1 0.5 0.5 6.6 All firms 250 94.0 100.0 12.7 100.0 17.4 100.0 20.5 100.0 10.1 100.0 19.4 100.0 6.5 100.0 100.0 Note: Percentages may not sum to 100 because of independent rounding. SOURCE: Based on McGraw-Hill, Engineering News-Record, July 13, 1989. 'Less than $50 million.
Asia is the source of most new engineering and construction work. In 1988, Japanese contractors remained formidable competitors in Asia, accounting for 27 percent of international construction work. U.S. contractors still managed to take a 22 percent slice of the highly competitive Asian international construction market. In fact, U.S. contractors increased their business in every foreign region in 1988. As shown in Table 9, they made their strongest percentage growth in Africa, where their awards doubled during the year. Increased awards in Europe accounted for the largest absolute growth ($3.7 billion), a 72 percent increase from 1987. Other markets showed strong advances as well. Awards in 1988 to U.S. construction firms doing business in Canada increased 85 percent from 1987. The weakest growth (12 percent) was in the Middle East, which until 1988 had led all other regions in dollar value of international contracts awarded.
Table 9: U.S. Construction Companies in Overseas Markets 1988 Percent Change 1987–88 Change 1982-88 Region of Award Firms Dollar value share Dollars Percent Dollars Percent Middle East 18 5.6 21.5 0.6 12.2 -12.8 -69.5 Africa 16 1.4 0.7 100.0 -1.5 -51.2 Europe 26 8.8 33.7 72.2 1.9 27.3 Asia 14 4.5 17.3 0.9 25.4 -4.4 -49.3 Latin America 31 2.6 10.1 0.5 24.8 -1.9 -41.7 Canada 22 3.1 12.0 1.4 84.6 -0.6 -15.2 Total 26.1 100.0 7.8 42.5 -19.2 -42.4 Note: Data are based on contract awards to 50 companies in 1988, 52 in 1987, 54 in 1986, 60 in 1985, 66 in 1984, 68 in 1983, and 77 in 1982. Calculations are based on unrounded data. SOURCE: McGraw-Hill, Engineering News-Record, April 19, 1984; April 18, 1985; April 17, 1986; April 16, 1987; April 14, 1988; and May 25, 1989.
International Engineering and Construction Progress in exporting will depend on factors both inside and outside the U.S. international engineering and construction industry. Among the more important of these factors are financing, technology and management capabilities, experience, and reputation. For construction projects that are labor intensive, and especially where local inexpensive labor is available, U.S. firms have little hope of capturing the market. For more technologically sophisticated projects, financial packaging becomes more important than price. U.S. companies are often unable to provide financial packages that are comparable to those offered by foreign national governmentassisted competition. Lack of such packages often means that the awards go abroad. In the face of these difficulties, U.S. firms hesitate to invest the money required to submit bids overseas and turn instead to the lucrative and more accessible domestic market. U.S. design and construction firms excel and are competitive, however, in complex projects for which the overriding factors are quality of design, construction, and construction management. During 1988, U.S. firms were very successful in winning contracts for petroleum refineries and petrochemicals projects that required advanced construction technologies and special expertise. xviii
Local subsidiaries, joint ventures, and acquisitions were very important in the U.S. design and construction firms 1988 international strategy. According to the 1989 "Competitive Assessment of the U.S. International Construction Industry” by the U.S. Department of Commerce, many host governments require foreign firms bidding on design and construction projects to enter into joint ventures with local firms. As part of their strategy, U.S. contractors may well consider seeking out Japanese financing for their work. In 1990, Japan may be the world's largest donor of economic assistance to developing countries. Japanese aid of about $10 billion a year could be an important source of financing for construction projects in those countries. If, as expected, Japan gradually unties its aid program, U.S. contractors could gain export opportunities through the use of Japanese financing. To accomplish this and to develop a position in the expanding domestic Japanese construction market, U.S. contractors should consider acquiring licenses in Japan, establishing branch offices in Tokyo, and entering into partnerships and joint ventures with Japanese design and construction companies. Japan's development spending is highest in a number of sectors in which U.S. design and construction companies are competitive suppliers. Preferred sectors now include power genera tion and transmission, pollution control, road and railway construction, telecommunications, manufacturing, and water resource management. CONSTRUCTION REVIEW |
Select the answer that lists the top three regions in order from most to least paper use.
Pos Terkait
Copyright © 2024 kemunculan Inc.
