International Marketing in Construction Industry Essay

International Marketing in Construction Industry - Essay Example ...) are aware of possible future challenges in this sector, and have started, or are preparing, to address them. The competition in this industry is high because these countries have a high demand for construction services, as they deem it to be necessary for their overall economic growth. In the past years, both the demand and the supply curves for this industry have witnessed a rightward shift, but as can be seen from the diagram below, the increase in demand has been more than the increase in supply, leading to a higher equilibrium price, and making this industry a highly profitable one for suppliers. Due to this very reason, there has been a lot of capital inflow and investment in the region, with more firms entering the market and a higher degree of competition in the industry. Deciding exactly which place to go will depend on the country's economy, the firm's goals, competition in that particular country, the market for labour force, etc. Also, policies by Governments and other statutory bodies regarding restriction on entry of foreign firms in the country will play a role. In the following topics, we shall discuss what factors will help the firm gain access to the market, and how the firm can tailor its own assets so as to make sure it best suits the region's industry. If we happen to see a bird's eye view of the constru... There is a huge variety in different states concerning the degree of development in this sector. For example, although public construction has remained weak in Vietnam, there has been a strong expansion in private construction that began in late-2001, and still continues1. In fact, this momentum was enough to pull overall growth in the industrial sector up to 9.0 per cent in 2003. Data shows that construction activities recovered strongly in Brunei from a contraction of 2.4 per cent in 2001 to expand 7.5 per cent in the following year but a real estate glut in the capital added to the sector's difficulties in 20032. The construction industry in Singapore has an annual gross output of about $10 billion, with a capacity of about $12 billion (Ofori, Foreign construction workers in Singapore). If we bring this to the forefront, then investing in Singapore's construction industry definitely seems to be a beneficial option for the firm. The industry contributes around 7 per cent of gross d omestic product (GDP) of the country and accounts for about 6.5 per cent of total employment. A very important thing to note is that since the mid-1980s, construction enterprises from Singapore have won a sizeable volume of projects in countries within the region. So, investors in Singapore are able to access markets throughout the region, without actually investing permanently in them. Regarding the area of Foreign Direct Investments in the region, South, East and South-East Asia have continued to be the main magnet for capital inflows into developing countries. In 2005, South-East Asia sub-region received $37 billion (Auansakul, An Excerpt from an Overview of World Investment Report 2006), led by Singapore, Indonesia, Malaysia and Thailand. Policies like allowing single-brand