Market trends and effects on the construction sector
In the last decade, the Italian economy has had very fluctuating trends, fluctuations strongly influenced by structural and global changes of all economic levels and by the volatility of the financial markets.
In the economy of the old millennium we used to reason by sectors, namely the Primary Sector which includes agriculture and mining, the Secondary Sector which includes industry, the Tertiary Sector which includes services, the Quaternary Sector which includes activities with high added value and technology.
Today we are more likely to reason by analyzing the markets, basically the economy and the economic sectors are interconnected with each other and therefore the sectoral trends are strongly influenced by the trends of the individual markets.
In this rather complex scenario, traditional markets have undergone radical upheavals and in some specific cases real downsizing.
If we had to do a specific research on the market trend in the first two sectors, agriculture and industry, we would find some positive and other decidedly negative trends, only in specific cases will we see the affirmation of market niches that have performed significantly. In any case, the aggregate value will be quite consistent with the main fluctuations of the national economy.
In this brief study we will focus on markets that have performed positively in the last decade and which thanks to their growth have positively influenced the demand for “new industrial buildings”.
THE LOGISTICS MARKET
Market numbers speak of a healthy market. Although with some uncertainty between 2011 and 2012, the decade is to be considered decidedly positive.
At an organizational level, attention is focused on the different forms of warehouse management. The heterogeneity in company decisions and the importance of knowing how to choose the most suitable solution for the individual site clearly emerges. The choice of the organizational model is influenced by a wide list of factors that range from the management method, from long-term contracts, to reasons strictly related to the relationship with the client.
Revolution 4.0 is becoming increasingly popular, both in the world of warehouses and in the world of transport, where technologies no longer constitute the barrier to innovation.
This innovation has a value that goes beyond the efficiency or effectiveness of the individual activities, but can become an enabling factor to modify or evolve consolidated practices, as emerged from the in-depth analysis on the pharmaceutical sector, where new solutions are being experimented aimed at to identify synergies on transport with other supply chains.
Logistics numbers
From 2009 to 2018 the logistics market had an overall increase of 4%. In terms of business volumes, we went from a general value of goods handling from 71 billion to 82 billion euros.
Employment rose vertically, incorporating resources at a national level of around 20,000 units in the reference decade. Today there are about 2,000 companies operating in the sector, large multinationals and / or drivers in the sector, but also SMEs closely interconnected to them through sub-contracting and out-sourcing contracts.
Positive market reflection in industrial construction
The growth of the logistics sector must be seen above all in a technological context, that is, the structural reform linked to new technologies, which have almost forced the primary players in the sector to convert and build from scratch, hubs and logistics centers. Surely the four regions that benefited the most, in terms of turnover and new construction sites, were: Lombardy, Piedmont, Veneto and Emilia-Romagna.
Structural investments in the logistics sector have also been important in the south, albeit in a smaller form than in the regions mentioned above, contributing significantly to economic growth.
THE PHARMACEUTICAL INDUSTRY MARKET
A real world excellence, like the Italian pharmaceutical industry, represents the prospect of concrete opportunities for everyone. Advantages aimed both at companies operating in this market area but great opportunities also for the human resources employed in it.
The pharmaceutical industry in Italy needs to maintain its leadership at European and global level. It can only do this by developing new and innovative marketing strategies for companies in the sector, through governance that is able to express high-level management and above all thanks to structural investments aimed at improving the work environment.
The numbers of the pharmaceutical industry
To better understand the power of the pharmaceutical industry in Italy, it is certainly useful to give some numbers that can encompass the importance of our country in this sector. According to statistics reported by Farmindustria, we are in first place in the pharmaceutical production of the European Union. A real success, evidenced by a consistent increase in exports, + 17% between 2008 and 2018, which led to a + 22% in the increase in production, also this statistic over a ten-year period.
The pharmaceutical sector, to date, has about 200 companies, 66,000 employees (90% graduates or graduates), 6,400 researchers, 2.8 billion investments (1.5 in research and 1.3 in production), with 31.2 billion of euro of production in 2018 (against 30 billion in Germany, second in the ranking), almost 80% destined for export.
Outgoing foreign trade represents another important strength, and a real driving force for constant and progressive growth in the sector.
Positive market reflection in industrial construction
The exponential growth of the pharmaceutical sector in Italy has positively influenced the industrial construction sector.
From 2010 to 2019 about 120 companies have invested structurally by building from scratch and / or modernizing the production sites. There is talk of total investments close to one billion euros.
The regions heavily involved in this growth process were mainly Lazio, Campania and Emilia-Romagna.
For the years to come, the acquisitions of small companies that develop Biotechnology are under the magnifying glass of the leading pharmaceutical companies. According to the market forecast, the impact on structural investments will certainly be significant.
THE MARKET OF SHOPPING CENTERS AND RETAIL
In the last ten / fifteen years in Italy there has been the boom and explosion of shopping centers. This socio-economic phenomenon has involved all Italian regions and 90% of all municipalities in the national territory.
After the great expansion phenomenon, there is already talk of a revision of the business model 2.0 of shopping centers. The big brands are returning to the historic centers, a choice influenced by consumers who are re-evaluating the purchase in the open air, thus being able to find a shopping experience that is combined with the beauty of the architectural panoramas.
Certainly, in recent years, internet commerce has taken away a large sum of sales from shopping centers, halving the time and cost of purchase. Precisely for this reason, large chains need locations that can recreate a shopping experience capable of re-enhancing the moments of sociability that derive from a physical experience: the pleasure of a walk and a store that involves buyers.
The numbers of the commercial / retail sector
This market activates, along the national economic system, a value of 139.1 billion euros, with an employment impact that exceeds 780,000 employees. These are the main results of the analysis “Industry of Commercial Poles in Italy. Between supply chain and social role “, curated by Nomisma on behalf of the National Council of Shopping Centers and presented in the Conference Room of Palazzo Montecitorio.
In 2018, 1,254 structures in Italy – 1,020 shopping malls, 181 shopping parks, 30 outlets, 23 lesure centers – accounted for 71.6 billion in direct turnover equal to 4% of GDP, 587,000 jobs and a contribution to tax revenues of 27.8 billion euros. To this is added an induced, in terms of purchase of goods and services, of further 54.1 billion and 159,000 jobs.
The survey was integrated with a phase of listening to the population – over 1,000 respondents throughout the country – aimed at investigating the positioning of shopping centers in the habits of Italians.
Shopping centers – without losing their main function, i.e. purchases (made by 86% of those who attend them at least 2 times a month) – are increasingly becoming places of aggregation and socialization. For 83% of regular users, they are a place to spend their free time. 38% also take advantage of the food and wine offers: restaurants, pizzerias, fast-food outlets, cafés.
Positive market reflection in the construction and real estate sector
This market has definitely influenced the real estate and construction market. An estimated 20,000,000 square meters have been built for shopping centers in the last decade. The average construction cost of the same is approximately € 2,500 per square meter, thus constituting a total turnover of approximately € 50 billion.
The commitment of Inveco Group in the sectors mentioned
INVECO has been collaborating for several months with companies belonging to different markets. We have established excellent relationships with important players operating in the field of logistics and transport, with companies belonging to the biochemical and organic market (booming especially in the agricultural and food sector), but above all we are in continuous communication with important tenant leaders in the commercial and retail real estate market.
In conclusion
INVECO closely monitors the evolution of the economy and carefully studies the development and growth of all markets. Our experience as a general contractor allows us to identify in advance the positive trends of the markets and to promote appropriate marketing studies that can bring us in contact with the many companies that manage to perform despite the historical, social and economic period of great uncertainty.
Our model of continuous research, study and analysis of the markets represents a TRUE company VALUE.
