In 2009, construction companies carried out building, repair and incorporation services amounting to R$ 199.5 billion, and recorded real increase of 12.1% over the previous year. Except for real estate incorporation, the value of construction services reached R$ 193.7 billion. Out of this figure, R$ 85.5 billion came from services contracted by public entities, which accounted for 44.1% of the total services, slightly les than in 2008 (43.2%).

The number of active enterprises with or more persons employed in industry increased by 11.6%, from 57 thousand in 2008 to 64 thousand in 2009.

Total expenditure on employed persons corresponded to 30.3% of the costs and expenses of construction companies (0.9 percentage points more than in 2008) and reached R$ 48.3 billion, being R$ 31.8 billion  relative to salaries, withdrawals and other compensation.

Among construction companies with 30 or more persons employed, the products of infrastructure services were a highlight in 2009 due to a contribution of 49.7% to the overall value of building and repair/and other services  (R$ 83.1 billion), in spite of the decrease of participation from 1.2 percentage points compared to 2008. Construction services in residential and in  industrial, commercial and other non-residential buildings  represented a contribution of 17.1% and 18.4% to the total value of building and repair/and other services in 2009 and participation increases of 2.4 and 0.5 percentage points over 2008, respectively.

These and other relevant pieces of information can be found in the Annual Survey of Construction industry (PAIC) 2009, which brings information about the business sector of construction industry all over the national territory.

The complete publication is available at

http://ibge.gov.br/home/estatistica/economia/industria/paic/2009/default.shtm

Participation of building in gross revenue increases

As in the previous year, in 2009, enterprises offering construction infrastructure services were a highlight, with participation of 47.0% in total gross revenue (R$ 95.8 billion), 1.6 percentage points below the figure recorded in 2008 (48.6%, or R$ 81.0 billion). Enterprises of the building sector contributed with about R$ 80.4 billion in 2009, that is, 39.5% of the total, having grown by 3.3 percentage points in relation to 2008 (R$ 60.3 billion), whereas companies of specialized construction services, which had gross revenue of R$ 27.6 billion in 2009, accounted for 13.5% of the total, having faced reduction of participation in relation to 2008 (15.2%).

By range of employed persons, only enterprises with 500 or more employees recorded increase of participation: from 40.6% in 2008 to 45.3% in 2009.

Versus 2008, costs and expenses recorded real increase of 9.8%, following the expansion of real estate incorporation and of construction services (12.1%). Expenditure with salaries, withdrawals and other compensation represented, in 2009, about 20.0% of the total costs and expenses of construction, a higher figure than the one recorded in 2008 (19.4%).

In 2009, investments made in fixed assets in all companies of the sector amounted to about R$ 5.8 billion. The investment in machinery and equipment was the main highlight, representing 44.2% of the total amount invested, followed by land and building (31.2%), means of transportation (17.8%) and other purchases – furniture, personal computers, etc. (6.8%).

A comparison with the structure of investment in 2008 shows there are differences in the ranking, with changes in participation in land and building, from 14.4% to 31.2%, as a result of the acquisition of land and building by building construction companies; and in machinery and equipment, which changed from 53.8% to 44.2% between 2008 and 2009.

In 2009, the universe of active enterprises with one or more persons employed in construction industry encompassed 64 thousand active enterprises, with increase of 11.6% over 2008 (57 thousand enterprises).

Real estate incorporation, building and repair and other services offered by construction companies reached R$ 199.5 billion and recorded, in real terms, increase of 12.1% over the previous year. Except for real estate incorporation, the value of building and repair and other construction services reached R$ 193.7 billion, with R$ 85.5 billion of it coming from services contracted from public entities, which accounted for 44.1% of the total construction services, a level of participation slightly lower than that of 2008 (43.2%). Net operating revenue increased 12.0% in real terms between 2008 (R$ 154.6 billion) and 2009 (R$ 189.0 billion).

Total expenditure with persons employed corresponded to 30.3% of the total costs and expenses of construction, a result above the participation of 2008 (29.2%); expenditure reached R$ 48.3 billion, out of which R$ 31.8 billion consisted of salaries, withdrawals and other compensation. The average monthly wage increased by 9.2%, having changed from R$ 1,095 in 2008 to R$ 1,196 in 2009,. However, in terms of minimum wages there has been slight decrease from 2.7 to 2.6 monthly minimum wages. This does not mean reduction of purchasing power, but represents a consequence of the 12.6% rise of minimum wage, and its real gain of 7.9% between these two months.

Several factors have contributed to the positive results of construction industry, especially the increasing number of job posts with a formal employment contract and of real income, the increase of BNDES disbursement with emphasis on infrastructure, the expansion of construction in the PAC (Growth Acceleration Program), the reduction of tax rate zero of Taxes on Industrialized Goods (IPI) of 30 types of construction material and the expansion of credit for real estate acquisition.

In enterprises with 30 or more persons employed, the participation of residential construction services  increased from 14.7% to 17.1%

In 2009, the value of real estate incorporation and/or other services recorded real increase of 14.8% in companies with 30 or more employed persons.

The highlight was the performance of infrastructure services, a group of bigger influence on construction, with value of R$ 83.1 billion and participation of 49.7% in the total value of construction services. The main highlights were roads and railroads, with a contribution of R4 28.2 billion, and electricity generation and distribution, with R$ 13.7 billion.

The value of residential construction services was R$ 28.6 billion, mainly due to the result observed in residential buildings (R$ 27.6 billion), a product of more individual importance in construction and directly affected by the evolution of real estate credit. This segment represented 17.1% of the total value of building and repair and/or other construction services in 2009, having recorded increase of 2.4 percentage points in participation compared to that of the previous year (14.7%).

Products of the group industrial, commercial and other non-residential buildings reached, together, R$ 30.7 billion in 2009, representing 18.4% of the total value of construction services. This increase of 0.5 percentage points over the previous year resulted from the R$ 10.4 billion result of commercial buildings (shopping malls, supermarkets, shops, etc).