Finnish construction companies have improved their profitability during the sustained upswing in the construction industry.
The Confederation of Finnish Construction Industries (RT) on Sunday revealed that the profitability of its member companies recovered from a record-low of 3.2 per cent in 2016 to 4.7 per cent in 2017.
Sami Pakarinen, the chief economist at RT, said the momentum in new construction has enabled especially larger construction companies to improve their performance.
“The solid cyclical position has been founded on a boom in residential construction, which has also improved the profitability of concrete industry companies. We have witnessed major investments also in the construction product industry for the first time in a while,” he commented in a press release from RT.
Pakarinen reminded that although that profits of larger construction companies improved more than those of smaller companies last year, the profitability of small and medium-sized companies remains generally at a higher level.
RT also said it has detected early signs of a change in the operating environment of construction companies, with its member companies saying they expect their profitability to deteriorate slightly from the previous year during the course of 2018.
Statistics Finland’s business structure and profitability statistics show that fewer than one per cent of the 17,700 construction companies in the country are classified as medium or large companies in terms of revenue. The 30 largest companies, meanwhile, generate up to 45 per cent of all revenues derived from building construction.
Finnish construction companies are expected to post combined net sales of 28 billion euros in 2018. Over a half of the net sales are to be generated by the 400 member companies of RT.
Aleksi Teivainen – HT
Photo: Heikki Saukkomaa – Lehtikuva
Source: Uusi Suomi