China's Construction Boom

As the construction industry in the West remains in neutral, eyes turn to China for new construction opportunities

China Under Development

bY: Laura Clapper, constructiondigital.com, 03.07.2011

While the construction industry in the West is just beginning to recover from the global economic crisis, development in China has been booming for the last decade. Prompted by a lack of work in the United States, Canada and Europe as a result of the global economic recession, large architecture, general contracting and trade firms are taking their services and experience to China to create a niche in this emerging market.

WHY NOW?
Over the last decade, China has gradually relaxed its policy towards capitalism, allowing foreign investment and ideas into the country, within reason, of course. China is the world’s third largest economy and one of the few countries whose economy remained strong throughout the economic crisis. This was due to the Chinese government’s $585 billion stimulus package that helped stabilize the economy.

Construction equipment manufacturing companies, including Caterpillar, have opened facilities in China to meet the growing demand for such equipment in Asia. However, this expansion has come at the expense of jobs in the United States—prior to opening several manufacturing facilities in China, Caterpillar laid off over 2,300 American workers.

The construction boom in China is led by plans for urban revitalization and new development. As China’s population grows, many are moving to cities to search of employment and economic opportunity. As a result, the urban areas are growing to meet the need for new housing and commercial developments.

Though Beijing received the most development attention initially, mostly in preparation for the 2008 Olympic Games, development is underway in other commerce centers throughout the country, including Tianjin, Shenzhen, Wenzhou and Shanghai. Through this development, China seeks to strengthen its position as a global economic powerhouse and trade center of Asia.

KEY DEVELOPMENTS
Whether it’s the tallest building or the largest eco-city, the projects underway in China are designed to create a new benchmark for development worldwide. China’s one of the few countries where there is ample work in the infrastructure, housing and commercial construction sectors simultaneously.

What’s different about the development projects is that sustainability is a central component of the design, for buildings and master planned developments alike. Developers and architects from around the world are seizing upon the innovative green technology that has burst onto the scene over the last few years to create efficient cities with a reduced carbon footprint.

URBAN REVITALIZATION
Two cities currently in development are Sino-Singapore Tianjin Eco-City and Tongzhou New City.
Located 150 kilometers southeast of Beijing, the Tianjin Eco-City promises sustainability:
• All buildings will have to comply with stringent green building standards
• Powered by clean fuel and renewable solar and geothermal energy
• Green public transportation system—everything is accessible via walking, bicycle or public transport
• Preservation of natural wetlands and green spaces
• Water recycling and conservation
• Waste management
• Economic viability
• Housing for all income levels

Outside of Beijing, Tongzhou New City is designed to position the land and water transportation hub as a leading multi-functional city over the next ten years. The revitalization will focus on energy efficiency and sustainability as well as securing the economic development of the area. According to the Beijing Fang Di Institute of Economic Development, the city will “become a new center that decentralizes business functions of the central urban area, improves consumption functions, complements international functions and integrates cultural functions, as well as a forerunning, experimental and demonstration district as Beijing strives to establish itself as a world-class city, in an attempt to create an incredible city to live, which combines humanistic care, civilization, cultural attraction and harmony, and where people feel happy.”

IS IT SUSTAINABLE?
Hopefully, the global economic meltdown taught us one thing—that booms and bubbles can’t possibly sustain themselves. However, human by nature are notoriously short-sighted and I would bet that most haven’t learned this lesson at all.

That’s not to day that development in China will drop off substantially. Ambitious developments are in the planning and construction stages at the time of this publication. However, as with any potential bubble, it’s best to tread wisely.

Call Project Technology Solutions today to arrange a live demonstration of the power of web based construction software.

Project Technology Solutions (ProTech)
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Posted by ProTech at 3/7/2011 12:10 PM
Categories: Construction News
Tags: construction in china protech procore dealer web based construction software construction cloudware
 

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