FINANCING IS A KEY TO SHAKY MARKET

From the almost giddy atmosphere of 3-4 years ago, the view of the international contracting market is now one of caution, even concern. Much of this feeling is the result of the financial crisis that hit Southeast Asia in mid-1997. In 1997, this journal's Top 224 International Contractors generated $110.2 billion in revenue from construction contracts outside their home countries, a drop of 13.1% from the $126.8 billion reported in 1996. Even more startling is the 21.2% drop, to $233.7 billion, in total construction contracting revenue from all sources. A major driver of the international construction market has been private investment in developing countries, but the Asian financial crisis took the wind out of the sails of these capital flows. Pressure has increased on international contractors to find their own solutions not just to client demands, but to finding the financing to get projects off the ground. Contractors are also exposed increasingly to risk through build-operate-transfer, build-own-operate, and build-own-operate-transfer deals. Interest in Latin America and the Middle East is being partially stimulated by the lost markets of Asia. Russia is yielding some work but restricted export credit insurance is an ongoing problem. The Western European market, while huge, remains spotty.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/08919526
• Supplemental Notes:
  • Page Range: pp 42-44, 46, 48
• Corporate Authors:

  McGraw-Hill, Incorporated

  330 West 42nd Street
  New York, NY  United States  10036
• Authors:
  • Reina, P
  • Tulacz, G J
• Publication Date: 1998-8-17

Language

• English

Media Info

• Features: Figures; Tables;
• Pagination: 5 p.
• Serial:
  • ENR
  • Volume: 241
  • Issue Number: 6
  • Publisher: McGraw-Hill, Incorporated
  • ISSN: 0891-9526

Subject/Index Terms

• TRT Terms: Construction industry; Contractors; Economic conditions; Financing; International; International trade; Market assessment; Revenues
• Geographic Terms: Asia; Europe; Latin America; Middle East; Russia (Federation)
• Subject Areas: Construction; Economics; Finance; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00753325
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 28 1998 12:00AM