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San Francisco, CA (PRWEB) October 28, 2012
The Road and Highway Construction industry in China has been growing rapidly, driven by China's urbanization, increases in automobile ownership and freight and passenger road transportation turnover volumes, and ongoing government investment. In 2012, industry revenue is estimated at $226.9 billion. Over the past five years, revenue has been growing at an average annualized rate of 16.0%, says IBISWorld. While employment numbers have been growing, the number of enterprises and establishments remained relatively stable as the industry is heavily controlled and regulated by the Chinese government.
The activities of the industry are heavily supported by government investment. Major industry players like Sichuan Road and Bridge Construction Group, Fujian Road and Bridge Construction, Guizhou Road and Bridge Group, and Hunan Road and Bridge Construction Group, have long track records, high construction technology and strong relationships with local governments and suppliers. Therefore, large-scale construction projects at the state level are often given to these companies.
According to the 12th Five-Year Plan of Transportation in China issued in 2011 by the Ministry of Transport, the investment of fixed assets on road and highway construction is expected to total $787.4 billion between 2011 and 2015. Along with growing demand for highway transportation, this will support the development of the Road and Highway Construction industry over the period. Future industry trends include more road and highway construction projects in rural areas and the upgrading and rebuilding of provincial highways, says IBISWorld.