The total output value of Shanghai's construction industry exceeds 800 billion, and the steady transformation and development supports urban renewal

Recently, the 2021 Shanghai Construction Development Summit Forum was held in Shanghai, and the "Shanghai Construction Industry Development Report (2021)" was simultaneously released. The report disclosed that the scale and quality of the development of Shanghai's construction industry will continue to improve in 2020, and the growth rate will be faster than the growth rate of the total output value of the six key industries in Shanghai. The added value of the construction industry accounted for 1.90% of the city's GDP, the same as the previous year.

The theme of the forum was "Urban Renewal and Construction Development in the Context of'Dual Carbon'". Experts from the industry gave special speeches on topics such as "Urban Renewal", "Low Carbon and Energy Saving" and "Smart Buildings". It aims to build a communication platform for professionals in the construction industry, conduct in-depth discussions on important social development issues and urban construction issues, and strive to achieve the "dual carbon" goal.

The "Shanghai Construction Industry Development Report (2021)" jointly compiled by the Shanghai Housing and Urban-Rural Construction Management Committee and Shanghai Jianke Group Co., Ltd. was also officially released at the forum. The report reflects the overall picture of Shanghai's construction industry in the form of a blue book, and has been published for 7 consecutive years by 2021.

The report shows that in 2020, Shanghai’s construction industry will continue to maintain steady growth. The total output value of the construction industry for the year was 827.704 billion yuan, an increase of 5.94% year-on-year; labor productivity reached 665,900 yuan/person, an increase of 7.91% year-on-year, ranking second in China. In the case of a double-digit year-on-year decline in the fiscal revenue of the six major industrial industries, the fiscal revenue of Shanghai’s construction industry reached 17.210 billion yuan, an increase of 0.70% year-on-year, which played the role of local fiscal "stabilizer" and provided strong support for achieving economic recovery growth.

However, at the same time, due to the repeated new crown epidemic and the global economic environment, the profit margin of the output value of Shanghai construction companies in 2020 will continue to decline, and overseas business will be greatly affected, and the completed overseas operating income will fall 41.94% year-on-year. The report collects the development of 8 listed construction companies in Shanghai in 2020: their operating income increased by 12.87% year-on-year, and the growth rate has slowed year-on-year, slightly higher than the average of 54 listed construction companies nationwide. Due to the impact of the epidemic, the net profit of the eight listed construction companies in 2020 will drop by 23.7%. In addition, mainly driven by the R&D investment of Shanghai Construction Engineering and Tunnel Co., Ltd., the overall R&D investment of listed companies increased by 27.45% year-on-year, accounting for 3.50% of overall operating income. The growth rate and proportion increased compared with the average in 2019.

The report also shows that the transformation and upgrading of Shanghai's construction industry strongly supports urban construction and urban renewal. That year, the construction area under construction of various construction projects in Shanghai increased by 17.6% over the previous year. As of the end of 2020, Shanghai has a total construction area of 1,454.3 million square meters of various types of houses; residential construction area amounts to 711.52 million square meters. The per capita housing area of urban residents is 37.3 square meters, and the per capita park area is 8.6 square meters. Prefabricated buildings accounted for 90% of the city's newly started construction, and the cumulative implementation reached 150 million square meters. The total area of green buildings is 233 million square meters, and 7 green ecological districts have been created, covering about 27 square kilometers. The transformation of BIM technology results has continued to advance in an orderly manner, and the number of applications in major projects, key areas and the construction of affordable housing has reached 777.