Veidekke ASA: Improved forecasts for contracting markets in 2021/2022

Veidekke ASA: Improved forecasts for contracting markets in 2021/2022

25.03.2021 - 08:30

Based on the market stability seen in 2020, Veidekke expects activity levels to remain very high in contracting markets, with growth in all three Scandinavian countries in 2022.

“Construction markets have weathered the Covid-19 pandemic well thus far. Order intakes, revenues and profitability remained stable throughout 2020, giving the industry a strong foundation for future activity. Stable activity often also means improved access to expertise and greater predictability than during periods of substantial market fluctuation,” says Jimmy Bengtsson, group CEO of Veidekke ASA.

The forecast for the Scandinavian markets is generally flat to weakly positive growth from an existing high activity level. In the Norwegian construction market, Veidekke expects growth of 1% this year and 2% next year. In the Swedish market, zero growth this year is expected to turn into 2% growth in 2022. The Danish market is predicted to grow 3% in 2022 following an estimated 5% decline in 2021.

Although the market as a whole is stable, there is considerable movement below the surface, creating opportunities for construction companies.

The expectation that the Covid-19 pandemic would weaken demand for residential units was thoroughly disproven in 2020. On the contrary, the residential market recorded very strong growth, and prognoses for 2021 have been raised substantially, particularly in Norway and Sweden. Forecasts indicate a strong new-project pipeline and 5% production growth in 2022.

The civil engineering market is expected to grow by 6% this year and 3% next year. Strong growth in the transport infrastructure sector looks set to continue, driven by several major rail developments in both Sweden and Norway and a strong road construction market. The outlook for the asphalt sub-market is also positive, with anticipated growth of 9% in Norway this year following a very weak 2020.

The biggest future challenges are likely to arise in the commercial buildings segment, where production is expected to fall until the end of 2022. Travel restrictions and widespread working from home in the Scandinavian countries are reducing demand for both hotels and offices, and it is likely to take time for these market segments to recover.

In Norway, the municipal sector also reduced its investment levels substantially in 2020, effectively stopping the pipeline of new building starts. The municipal sector is responsible for the development of schools and care facilities, and is therefore a large and very important customer for the construction industry.

Veidekke’s market report will be published at 08:30 on Thurday 25 March. The presentation can be viewed via webcast on

For more information, please contact:
Kristoffer Eide Hoen, Chief Analyst, Veidekke ASA, +47 976 75 434,

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking all types of building and civil engineering assignments, the group also maintains roads and produces asphalt and aggregates. Veidekke emphasises stakeholder involvement and local experience. Its annual turnover is approximately NOK 38 billion, and half of its 8,100 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit every year since its inception in 1936.