New figures released by GlobalData show that the construction project pipeline in Australasia is healthier than that of any other region, while in sub-Saharan Africa the industry is struggling to meet deadlines.
Australasia has a score of 0.87 in GlobalData's February 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData's database is assigned a score of between 5 and -5 based on its current progress, a score which is continually updated over time. These are then weighted by the value of each project in order to arrive at overall scores for countries, regions and sectors.
Within Australasia, the institutional sector has performed particularly well, with a score of 1.21, ranking first out of all 11 regions.
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By contrast, the region's energy and utilities sector has performed less well, ranking fourth with a score of 0.65.
Of all the countries in Australasia, the construction sector is healthiest in New Zealand, which has a score of 0.91 in GlobalData's Construction Project Momentum Index.
Which regions are struggling?
While the construction sector in Australasia may be thriving, in sub-Saharan Africa the situation is less positive.
Sub-Saharan Africa has a score of just -0.24 in GlobalData's Construction Project Momentum Index, indicating frequent project delays and cancellations.
The situation is somewhat better in Ethiopia, the best-performing country in sub-Saharan Africa with a score of 1.01.
Looking at construction projects by industry, sub-Saharan Africa's difficulties are greatest in the residential sector, which scores just -0.76 in the index. That puts sub-Saharan Africa in 11th place out of 11 regions in terms of the health of its residential sector construction projects.
The commercial and leisure sector performs somewhat better (0.55).
How are different sectors performing worldwide?
GlobalData's analysis examined construction projects in six sectors around the world: energy and utilities, commercial and leisure, industrial, institutional, residential and infrastructure.
For construction projects in the energy and utilities sector, north-east Asia is seeing the healthiest performance with a score of 0.79 in GlobalData's Construction Project Momentum Index. By contrast, sub-Saharan Africa has the worst score for projects in this sector – just -0.42.
Looking at projects in the industrial sector, Australasia is the best-performing region with a score of 1.14, whereas sub-Saharan Africa is the worst-performing region with a score of -0.7.
Investors looking to avoid delays and cancellations while constructing residential buildings should be looking to western Europe, which comes out top of the Construction Project Momentum Index in this sector with a score of 0.82, while steering clear of sub-Saharan Africa (-0.76).
Infrastructure projects, meanwhile, have been running most smoothly in north-east Asia (1.0), while meeting the greatest friction in sub-Saharan Africa (0.08).
In the commercial and leisure business, construction projects are currently seeing fewest delays in western Europe (0.85) and the most delays in Latin America (0.02).
GlobalData also examined the progression of construction projects in the institutional sector, finding that they were proceeding most successfully in Australasia (1.21) and least successfully in sub-Saharan Africa (-0.49).
The Construction Project Momentum Index
GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project's score, while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids, or the reducing of the project's scope.
Events that can increase a project's score on the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.
GlobalData's Construction Project Momentum Index's regional breakdown can be found by following these links:
- Western Europe
- Sub-Saharan Africa
- South-East Asia
- South Asia
- North-East Asia
- North America
- Middle East and North Africa
- Latin America
- Eastern Europe