Construction Line9 Metro Tunnel Madrid
Business strategy

Growth and internationalisation of the construction sector

25 of June of 2013

We are a business with very narrow profitability margins. This means that efficiency, translated into technical innovation, cost control and the management of the rolling fund, complete, together with respect for the environment and the safety of our employees, the virtues that 60 years later place us at the international forefront in the construction sector.

While construction is a business that is not especially associated with technical innovation, I believe that the reality is quite different when we think that we are competing with local companies in a wide variety of countries, working mainly for public administrations as the end client, who have to see major differential advantages in a foreign company before entrusting their business to it rather than to their national companies.

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According to specialist sources in the sector, the worldwide demand for construction in the next decade will approach more than 13% of world GDP, with infrastructures accounting for 30% of the investment total. Given this vast market, which is sufficient for finding very good opportunities, it will be very important to be an international construction company with a local vocation or, in other words, to be able to play locally with multinational strength and knowledge. We will have a market undergoing continuous growth, always dissatisfied and demanding new infrastructures and improvements, changing in regard to geography, challenging in technology, but always dependent on public financing though with the growing weight of private initiative. This means that our model will continue to be valid, just as it is today.

In our case and in that of the rest of the major construction companies on a worldwide scale, the important challenges in response to economic and population growth and the growing urban build-up will be new transport infrastructures and, with increasing importance, those linked to the production of natural resources and the generation of energy.

We must equally focus on gaining access to emerging markets, as these are regions that will gradually gain weight on the world construction market relative to developed markets. Increasingly, added value in construction comes from working efficiently in sites where others are not capable of doing so, although we must preserve a suitable mix with developed markets.

It is thus essential to look to the future because the world of construction continues to be an attractive and growing market. At the same time we must preserve the application of the values of the past that have helped us so much to reach the position we hold today, 60 years later.

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