Nov 19 2009
The future of the evolving building construction market largely hinges on its participants' ability to integrate solutions including green and energy-efficient concepts, financial strengths, skilled workforce, and technology deployment. The skill to integrate solutions from civil design to electro-mechanical works presents several opportunities to market participants.
Currently, such expertise in service integration is sorely lacking. This is a huge handicap at a time where new buildings are increasingly being automated and built using green concepts.
New analysis from Frost & Sullivan (www.buildingtechnologies.frost.com), Strategic Analysis of Building Construction Market in Malaysia, finds that the market is expected to earn revenues of $8.93 billion by 2015.
"At present, the integration process may involve too many parties along the value chain, and this, ultimately, does not benefit the end users," says Frost & Sullivan Consultant Melvin Leong. "Architects, engineers, and system providers need to work more closely with each other to provide a standardized solution in building constructions."
The growing construction market in Malaysia has benefited from the construction of commercial and residential projects, industrial and manufacturing facilities, and other socio-economic infrastructures including airports, ports, and utilities such as new water and wastewater treatment plants and rehabilitation of older plants. The spurt in construction activities is backed by continued urbanization, economic development plans, and promotion of tourism in Malaysia.
The budget for rural development is likely to increase in the upcoming 10th Malaysia Plan in 2010-2011, and this will auger well for the market. The building construction market is expected to thrive in 2009 and 2010 due to the final disbursements of budgets and launch of new projects outlined in the 9th Malaysia Plan. These efforts are in-line with the national development policy that aims to propel Malaysia into the 'developed nations' league by 2020.
To cash in on the demand, the market must be well equipped with manpower. However, participants are facing a shortage of skilled workforce and are challenged by the socio-economic issues of dealing with foreign laborers.
"The industry depends greatly on these foreign workers," notes Leong. "On the other hand, local skilled workers such as engineers and architects are needed to provide more complete and integrated building solutions, as it is not feasible to segregate traditional building construction methods and designs from today's much advocated green concepts."
Although the competition is stiff, with the presence of both local and foreign participants, the market is still missing companies that can offer total integrated solutions in building construction. Foreign participants will do well to sign joint ventures and partnerships with local companies in public projects. Together, they could attempt to supply the demands of market and make the most of the lucrative opportunities.
Source: http://www.frost.com/prod/servlet/frost-home.pag