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The building and construction sector refers to the industry responsible for the design, construction and maintenance of buildings and infrastructure. This sector covers a wide range of activities, including the construction of residential, commercial and industrial buildings, as well as infrastructure projects such as roads, bridges and utilities.
The building and construction sector is a major contributor to the global economy, providing employment and generating economic growth in many countries. The building and construction industry is constantly evolving with new technologies and materials developed to improve efficiency, safety and sustainability.
The building and construction sector, along with other related sectors, is the deepest industry in the world, with a size of 13% of global GDP. Beyond the impact of the pandemic in 2020, the sector's performance in the recent period did not meet expectations.
Over the past two decades, the industry has seen a business productivity growth of only 1% year-on-year. However, the annual growth rate of the global economy in the same period is about 2.8%.
Considering the time and working performance consumed, the risk of the sector is quite high, while the EBITDA average is around 5%.
While the annual change in the world construction sector market value in 2019 was approximately 2.6%, it was 3.2% in 2018. This ratio has serious regional differences. While the rate of change in China in 2019 was 4.4%, it was 1.2% in North America and 2.3% in Europe.
In the global market, there is an expectation of an annual profit of approximately USD 265 billion, which is hoped to be realized by the end of the crisis.
The total value chain size of the sector is estimated at approximately USD 11 trillion of global value-added and USD 1.5 trillion of global profitability. The analyzes show that despite the losses caused by the pandemic due to shifts to non-construction areas and lack of demand, the added value risk in the sector is 40-45%.
If the cost-benefit exchange value can be turned into an advantage by the companies in the construction sector, the total profitability ratio will be able to increase from 5% to 10%. Although the rates vary in branches such as housing, infrastructure, and industrial construction, we can say that the whole sector will be affected by this advantage.
There is a great deal of competition among firms to get the lion's share of the potential profitability of 265 billion USD, and we can say that firms that look more like the new (start-up) players of Silicon Valley than traditional firms are more advantageous.
Of this USD 265 billion, USD 215 billion is related to housing, USD 40 billion to infrastructure and USD 10 billion to industrial construction.
The building and construction sector has many trade shows that showcase the latest advancements, products, and services in the industry. Some of the most well-known and influential building and construction trade shows include:
BAUMA: It is the world's largest construction machinery exhibition. It showcases a wide range of products and innovations in the field of building, mining and construction equipment.
ConExpo-Con/Agg: It is the largest construction industry exhibition in North America. The fair, which offers the latest technology products in the fields of construction, asphalt, concrete, mining, and construction equipment, is held every three years in Las vegas.
The Big 5 Global Dubai: It is the largest building and construction exhibition in the Middle East. It is organized in Dubai, offering construction materials, equipment, technologies and services.
BAU Munich: One of the leading building and construction fairs in Europe. Introducing innovations in building materials, architecture, design and sustainable construction, the fair is organized in Munich, Germany.
Batimat: Barimat, one of the biggest fairs of the construction sector, takes place in Paris. It presents new products, materials, equipment and solutions for the sector.
London Build Expo: London Build Expo, which brings together the fields of construction, design and innovation, is organized in London every year. It provides information about new projects, technologies and co-operations.
It can be said that the building and construction sector is a locomotive sector that will never lose its fashion and influence. There are many different sectors that it affects and increases the business volume positively. In addition, the building and construction sector is a sector that receives raw materials from different sectors. For this reason, many other sector companies can also participate in the fairs of this sector. Companies of the aluminum, iron, steel and metal processing sector can participate in building and construction exhibitions and make observations about the raw materials needed. Or furniture and decoration companies, logistics companies, the glass sector, those operating in the field of occupational health and safety, and manufacturers of construction equipment can participate in building and construction sector trade shows.
DixiFuar turns your participation in the leading exhibitions of the building and construction industry into an unforgettable experience. Enjoy attending the industry's most innovative and impressive building and construction exhibitions with advantageous exhibition tours. Strengthen your business connections by being at the center of innovations and trends. Feel the pulse of the industry closely and build your future with DixiFuar.