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Construction industry in northern norway
1.
Business Opportunities in
Construction Industry in Northern Norway Finpro Norway Antti Mäkikyrö, Saara Annola
2.
Introduction (1) -
Business Opportunities in Northern Norway • In recent years, the northern Norwegian economy has grown faster than the rest of the country - a development that is expected to continue in the coming years. Norway's future welfare depends on growth in the north. – The government’s national budget includes investments of NOK 3,15 billion in the northern Norway for 2015. The focus areas will be: international cooperation, business, education, Infrastructure and the environment, and security. – Unemployment will remain low and the continued growth means that the region needs more expertise. • It is estimated that there will be total investments of NOK 300 billion in Northern Norway during 2014-2022. From these investments, there will be: – Private investments: NOK 211 billion – Public investments: NOK 89 billion • At the moment, the situation in Northern Norway is: – Ongoing investments: NOK 32 billion – Financed investments: NOK 57 billion – Planned investments: NOK 210 billion (Sources: The Norwegian Labour and Welfare Administration (NAV), www.kbnn.no, Government’s National budget 2015) 4/28/2015 © Finpro 2
3.
Introduction (2) -
Business Opportunities in Northern Norway • In Northern Norway, the estimated investments of almost NOK 300 billion are divided by following sectors (during 2014-2022): – Housing Construction (NOK 100,715 billion) – Offshore (NOK 65,418 billion) – Infrastructure (NOK 38,953 billion) – Energy (NOK 36,547 billion) – Public Construction (NOK 21,328 billion) – Food & Nourishment (NOK 13,613 billion) – Health (NOK 13,461 billion) – Manufacturing (NOK 5,147 billion) – Maritime infrastructure (NOK 4,171 billion) – Seafood industry (NOK 2,337 billion) (Source: www.kbnn.no) 4/28/2015 © Finpro 3
4.
Introduction (3) - Business
Opportunities in Northern Norway • Estimated investments during the years 2014-2022 in Northern Norway by areas: – East-Finnmark: NOK 17,4 billion – West-Finnmark: NOK 37,5 billion – Tromsø, Mid-Troms, North-Troms: NOK 72,8 billion – Hålogaland region: NOK 33,4 billion – Bodø region: NOK 45,0 billion – Helgeland: NOK 27,5 billion – In addition, NOK 60,0 billion in offshore (continental shelf) (Source: www.kbnn.no) 4/28/2015 © Finpro 4
5.
Housing Construction and
Public Construction- Market Demand (1) • There is a need for 700 000 more homes by 2040 in Norway. Only in Oslo, Akershus, Østfold and Buskerud counties, 8000 homes should be built every year to keep up with population growth and new citizens. The population is expected to reach 7 million by 2040. The population will grow in every county of the country. The most rapid growth is expected in Oslo, Akershus and Rogaland. The population of Oslo is expected to rise from 613 000 in 2012 to 832 000 by 2040. • This growth leads to a lack of housing and services in the country. A large part of the research in Norway relies heavily on activities taking place internationally, especially in Europe and the other Nordic countries. (Sources: The Confederation of Norwegian Enterprises (NHO), Norwegian government: Nasjonal transport plan, Statistics Norway) • Figure: Percent wise population growth in Norwegian municipalities 2014-2040. (Source: Statistics Norway, http://www.ssb.no/en/befolkning/statistikker/folkfram) 4/28/2015 © Finpro5
6.
Housing Construction and
Public Construction- Market Demand (2) • Business opportunities are especially in following sectors: – New technologies (i.e safety, measurements) in infra and construction industry. – Infra construction in roads, railways, harbours, powerline. – Suppliers to following segments: Steel, prefabricated concrete, metal works, interior/furnishing, system interior, windows, façade, glass/alu, sandwich elements, technical packages. 4/28/2015 © Finpro6
7.
Housing Construction –
Market Demand • In Northern Norway, the estimated investments in housing construction is in total of NOK 100,715 billion (during 2014-2022). For example: – Bodø NOK 17,1 billion (housing in general) – Tromsø NOK 13,2 billion in housing in general (for example: “Teaterkvarteret trinn 1”/NOK 75,4 million) (Source: www.kbnn.no) 4/28/2015 © Finpro
8.
Public Construction- Market Demand •
In the public construction sector, there are estimated investments of NOK 21,328 billion in Northern Norway (during 2014-2022). Some examples: – Nordland: • Bodø: NOK 1,2 billion (a new culture house), NOK 0,64 billion (a new school), NOK 0,2 billion (student houses), NOK 1,05 billion (a medical house) • Hadsel: NOK 1,07 billion (a hospital) • Svolvær: NOK 87,5 million (a police station) • Mo i Rana: NOK 144 million (a national library) • Sortland: NOK 200 million (a culture house/library) – Troms: • Tromsø: NOK 650 million (a new technology house), NOK 650 million (medical building), NOK 385 million (a police station), NOK 350 million (student houses), NOK 354 million (a hotel) – Finnmark: • South-Varanger: NOK 133 million (a border station) • Karasjok: NOK 200 million (a Sami school) • Hammerfest: NOK 60,0 million (a new school) • Vardø: NOK 133 million (a multipurpose house) (Source: www.kbnn.no, Byggeindustrien) 4/28/2015 © Finpro8
9.
Opportunity Identification - Finnish
Offering • Finland is known for the quality and puncutality in Norway. • European standard i.e. CE-marking are valid in Norway. • Our climate is very similar, so we are used to build in this weather. • Many Finnish companies are already present in the market and doing well. • Big well known companies from Finland are Caverion, Ruukki, Byggmakker, Ramirent, Cramo, Onninen, Lemminkäinen and many smaller ones have succeeded as well. • Finnish companies need to be ready to discuss cowork further from day one. • Be aware of that your accounting firm needs to be realible in Norway as well to win the contract. 4/28/2015 © Finpro9
10.
Contact information Finpro Norway,
Finland Trade Center Antti Mäkikyrö Head of Trade Center +358 29 4695 380 antti.makikyro@finpro.fi 4/28/2015 © Finpro10
11.
Thank You! 4/28/201 5 © Finpro11
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