Participation of construction for public entities in total value of public works recorded decline, and changed from 60.0% of the total, in 1996, to 52.4%, in 2002. Heavy Civil Construction, detailedly analyzed in this year's survey, also fell in terms of relevance, having changed from 51.4% of the overall value for works to 42.8% between 1996 and 2002.   

PAIC, which encompasses the whole national territory, showed that, in 2002, there were about 123 thousand construction companies in the country, with total gross revenue of R$ 86.2 billion in the year. They employed 1.5 million persons and paid, in salaries and withdrawals, a total R$ 12 billion – an average of 3.2 minimum salaries a month per employee¹. The survey provides results for each state as well, and encompasses 6 groups subdivided into 21 classes of activity. The Heavy Civil Construction segment, at which the analysis of results is aimed, includes seven of these classes² and is a highlight for holding 39.2% of the value of works executed/ performed, equivalent to R 28 billion.  It employs about 389 thousand workers, or 30% of the employees³. Among the 100 biggest companies investigated in civil construction, according to the value of works performed, 42 belong to Heavy Construction, which is characterized by major works of infrastructure.

A comparison between the survey of 2002 and that of 1996 (considering only companies with 40 or more employed persons)⁴, however, shows that Heavy Civil Construction has reduced its participation in the total value of works performed by civil construction. While in 1996, it accounted for 51.4% of this amount, in 2002 it changed to 42.8%. The decrease points to fall, in this period, of investments in public works, which are typically performed by this segment.  

This observation is also confirmed by other data:  in 1996, 60.0% of the total value of civil construction works was directed to works for public entities, and in 2002, the percentage fell to 52.4% (graph). Within the segment of Heavy Civil Construction, there was also decrease of public investment: the percentage changed from 80.5% in 1996 to 70.6% in 2002. In spite of that, companies from this segment still have public entities as their main market.  

As seen in the chart below, Heavy Civil Construction also fell in terms of relative participation  in employment between 1996 and 2002 (it used to employ 40.6% of the total number of workers and began to employ 32.6%), and in terms of paying of salaries and other compensation (going from 46.2% to 38.3% of the total).

On average, companies from the Heavy Construction segment employed 230 persons, being 30.0% bigger than the average construction companies (177 employed persons). This difference was even bigger in 1996, when the average size of Heavy Construction companies was 53.1%, above the average overall.

Participation of small and medium companies in Heavy Construction increases

The analysis of Heavy Construction companies according to their size shows that big companies (those with 500 or more employees) faced decrease of participation, between 1996 and 2002, in value of construction (from 67.6% to 49.4%) and in number of companies (from 11.1% to 7.4%). They also reduced their participation in employment of this sector (from 60.0% to 47.7%), in spite of remaining as the main employers and having higher revenue per employee than other classes.

Big companies also reduced their participation in the value of construction for public entities, from 67.5% in 1996 to 49.0% in 2002.  

Small and medium-sized companies increased their participation both concerning the number of companies and the value of construction works, as seen in the chart below:

Heavy Construction companies represent only 25% of the total companies, accounting for 42 of the 100 biggest companies, according to value of construction. The major ones in the Heavy Construction segment employ more persons and pay better salaries. The average number of employed persons per company is 1,607 in the biggest 100 companies and 1,712 biggest ones in the subgroup of 42 companies in Heavy Construction. The average salary among the 100 biggest companies is 5.5 minimum wages and in the main Heavy Construction ones, 6.1.  

Buildings and works in roads and highways make up 75% of the overall revenue

In terms of all civil construction companies, not only of Heavy Construction ones, the survey shows, for example, that 78.6% of the gross revenue (R$ 86.2 billion) refers to Construction of buildings and civil engineering works.  In this group, Buildings (44%) and Works in roads and highways (31%) account for the biggest revenues.

The revenues of Construction works and services abroad reached R$ 1.1 billion, with Works in roads and highways accounting for 70% of this total.

In relation to the total value of construction works (R$ 77 billion), 48.5% refer to works performed for public entities.  This client is especially important for the class of Works in roads and highways, which it accounts for 74% of the overall value of works.  

The total expenditure with construction material is R$ 20.5 billion.

At a higher level of detail of the types of works, we see 49.5% of the total value subdivided into: Residential buildings (R$ 14.0 billion); Roads, including paving (R$ 7 billion); Other non-residential buildings, such as schools, hospitals and hotels (R$ 5.0 billion); Works of electricity and telecommunication infrastructure (R$ 4.1 billion); Industrial buildings such as industrial sheds and buildings (R$ 4.0 billion); Streets, squares, sidewalks or parking lots (R$ 4.0 billion).

The value of works and the number of employed persons by Major Region is distributed as follows:

The state of São Paulo has the biggest percentage (35.3%) of the total value of works, followed by Rio de Janeiro (11.4%), Minas Gerais (7.2%), Bahia (5.9%) and Rio Grande do Sul (5.0%).  The same states stood out in terms of number of employed persons: São Paulo (28.1%), followed by Rio de Janeiro (11.7%), Minas Gerais (9.2%), Bahia (6.1%) and Rio Grande do Sul (6.1%).

________________________________________________________________

^{1 Calculated according to the average minimum wage of year 2002, R$ 195.00.}

² The Heavy Construction segment is formed by the following classes of the National Classification of Economic Activities (CNAE):  Earth moving; Construction of highways and roads; Major structures and works of art; Urbanization and landscaping; Works of other types; and construction of Barrages and dams for the generation of electricity and Stations and networks for distribution of electricity.

³ Considering companies with more than 5 employed persons.  In PAIC 2002, the stratum of companies with 0 to 4 employed persons produces data for the total construction sector only.   Companies with up to 4 employed persons accounted for 7.6% of the total value of works in 2002.

⁴ PAIC 2002 includes, for the first time, data of companies with less than 40 employed persons, now encompassing all the civil construction in Brazil.  The comparison 1996/2002, however, only take into consideration the data of companies with 40 or more employed persons, to allow comparability.  This restriction does not jeopardize the understanding of Heavy Construction, nevertheless, since companies with 40 or more employed persons account for 75.5% of the total value of works of this segment.