The SACE Research Office publishes a study of in-depth analysis on Italian construction companies, increasingly present in international markets.
Below is a brief abstract of the most important points:
- The share of turnover achieved abroad by Italian contractors has increased considerably in recent years, from 3 billion in the 2004 (31% of the total) to 14 billion in the 2016 (73% of the total). In addition to intercepting an unprecedented and perhaps unrepeatable increase in demand from new markets (in a phase of crisis on the domestic side), the work portfolio of these companies has expanded above all in high-risk and medium-high risk contexts with significant margins. , as well as on orders of significant amount.
- Italian companies have traditionally positioned themselves in markets that are often peripheral, but to be explored, neglecting in part the "opportunities" for growth offered by investments and infrastructures planned in advanced and more advanced countries. The first 15 countries for construction investments in the world, equal to 75% of the market, represent in fact less than 20% of the work portfolio of Italian companies.
- We classified the Italian companies in the sector in three categories based on their characteristics of operations abroad: the "Cristoforo Colombo", which intervene in high risk contexts, the "Amerigo Vespucci", which operate in geographies characterized by an average riskiness and, finally, the "Giovanni Caboto", who compete in advanced and more reliable markets. The latter are certainly a minority, while the Italian presence remains high in countries that are highly exposed to the volatility of international investment flows and still remain dependent on raw materials. Even geographies characterized by a relatively stable regulatory framework, credible public-private investment plans and good growth prospects continue to appear unexplored and require, in some cases, system support to reduce entry barriers.
- These considerations become even more significant considering that the 2017 has seen a recovery in investment in construction also in advanced markets, with a reversal of the trend with respect to the progression of emerging countries, which are returning below the 60% of global demand. In a framework of optimizing investments in these geographies, infrastructures show a higher resilience than the other sectors. It is a sector that often sees the direct intervention of public entities and the sovereign guarantee of the country in which the work is carried out to access the necessary financing. It will therefore be important to keep the focus on the country risk of the geographies in question, using the most appropriate protections.