Macroeconomic scenario and reference markets

The competitive landscape of the Salini-Impregilo Group is the global market of investments in the construction industry and specifically in the construction of complex large-scale infrastructures.

Global economic activity and trade showed signs of growth in the second half of 2013. Specifically, the International Monetary Fund reported that consumer demand in most developed countries has grown moderately, though in line with forecasts, while in emerging markets exports have been the main driving force, with enduring weak domestic demand and difficult financial conditions.

Economic forecasts in the Eurozone expect a recovery after the recent recession. The International Monetary Fund expects the European Union to grow by 1% in 2014 and 1.4% in 2015, though with trends differing from one country to another. Germany’s economy is forecast to grow by 1.6% in 2014 and 1.4% in 2015, while the forecasts for Italy are rather conservative with trends of 0.6% and 1.1% in 2014 and 2015 respectively. According to the IMF, the emerging countries are expected to grow by 5.1% and 5.4% in the 2014-15 period.

A McKinsey study for the OECD reported that from 2014 to 2030 investments in infrastructures will amount to US$57,300 billion, of which about 29% in roads and motorways, 21% in energy infrastructure, 20% in hydraulic works, 17% in telecommunications, and finally 13% in metros/railways, airports and ports.

In the next four years, an upward trend is expended in global demand for infrastructures, equal to 9% per annum, in the energy, transport and other civil infrastructure sectors. In this perspective, an important business opportunity is represented by the need of most economically developed countries to replace or expand existing infrastructure that are no longer adequate to meet growing energy needs, and the need for mobility, energy and water related to the economic development and urbanization that is affecting many emerging and developing countries.

The global “Great Recession” in the 2008-2011 period, though penalizing some segments in the construction sector, such as residential and commercial construction, did not slow down the demand for major infrastructure projects, which, on the contrary, continue to represent a strategic priority for the growth of the domestic economies of most countries, both industrialized and emerging, with particular reference to areas such as the Middle East, Central Asia, Latin America and India.

In this perspective, the merger between the Salini and Impregilo companies has consolidated the global competitive standing of the Group, consolidating its presence in the geographical areas in which it already operates and providing its operating structure with the expertise needed to access new markets and support continued business growth.

The Salini Impregilo Group’s new dimension, designed to catch the early signs of change, has successfully implemented the Campione Nazionale® project characterised by: 

  • a body of engineering and technology expertise of the highest order in the construction industry;
  • an integrated management team with the determination and experience required to compete in large-scale and complex infrastructure projects;
  • a global presence with an almost unique commercial strength;
  • the scale of a market leader;
  • a solid financial structure with an adequate credit standing (BB(Fitch)/BB(Standard&Poor’s) issuer ratings).

The estimated value of the projects in the portfolio is characterised by a well-balanced geographic composition, with major contracts in Latin America, Europe and the Middle East and a greater focus on the hydroelectric, dams, metro, roads and highways, and railways segments.