Fakta Om Byggandet 2013

Machine Translated by Google
2013
Facts about
THE CONSTRUCTION
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Facts about the reconstruction
A well-functioning construction and property market is of essential importance for Sweden's growth,
development and prosperity. It provides the physical conditions for housing, transport, industrial production
and community services.
The construction industry has had a turnover of over SEK 500 billion per year in recent years and the value
of the property stock can be estimated at just over SEK 6,000 billion. To this must be added the value of
infrastructure such as roads, bridges, railways, ports, airports, etc. Together, the built environment constitutes
approximately half of the national wealth.
In 2012, the construction industry employed 312,000 people and construction investments amounted to SEK
309 billion, which corresponded to 9 percent of GDP.
In the civil engineering sector, with an annual turnover of approximately 1,000 billion kroner in recent years,
around 500,000 people or 11 percent of the total number of gainfully employed people are employed. This
sector includes companies with operations in the construction industry, property management and the building
materials industries as well as architectural offices and technical consulting agencies .
In Facts about Construction , we have compiled statistics on construction investments, housing, the structure
of the industry, the labor market, etc. It is our hope that it will be helpful when you need clear information about
the construction market.
Sweden's Construction Industries

September 2013
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The inventory is elaborated by BIA analysis Cover

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Content
4 Labor market 37
Construction investments
5 Gainful employment in the construction industry 38
Total construction investments
6 - age distribution - proportion of women - born 39
Construction investment's share of GDP
abroad 40
Housing investments – new
7 41
and remodeling – multi-
apartment buildings and single-family houses 8 Employees in the construction industry - distribution by area
9 of activity 42
Local investment – private
10 Employed and unemployed construction workers 43
and public
11 The high school's construction and facilities program 44
Capital investments – private –
12 University engineering education – construction technology 45
public
13
Total construction investments per county 14 Energy and environment 46

Energy use in buildings 47
Residences 15 Energy requirements for buildings 48
The planning and building permit 16 Energy and environmental classification of buildings 49
process The appeal process 18 Reduction of hazardous substances in building materials - BASTA 50
Started housing 20
21 Costs 51
New production according to form of grant
22 Costs in a housing project 52
Reconstruction of housing
23 Development of production costs 53
ROOT deduction
The number and size of the dwellings 24 Property price trends 54
Housing stock by age 25 Factor price index for apartment buildings 55
26 Operating and maintenance costs for apartment buildings 56

Demolition of apartment buildings
Housing cost share of disposable income 57
Infrastructure 27
Freight transport work by traffic type 28 Internationally 58
29 Housing construction – The Nordic region excluding Iceland 59

Passenger transport work by traffic type
30 The construction market's share of GDP – EU 60
Infrastructure investment's share of GDP
31 VAT rates in Europe - Construction 61
Financing solutions
The structure of the industry 32
Number of companies in the construction industry 33 SNI table for the construction industry
Building and construction contractors – size structure 34

The 10 largest construction companies 35
Newly started construction companies, construction companies in bankruptcy 36
Sweden's Construction Industries 3

Construction investments
SEK billion 2012 prices
350
300
250
200
150
Housing new construction

100
Residential remodeling
50
Premises
Facilities
0
1950 55 60 65 70 75 80 85 90 95 00 05 10
Source: Statistics Sweden, BI
The total construction investments, i.e. new and remodeling 25 percent in 1995. Despite the increase during the first decade of
investments in properties as well as investments in facilities, the 21st century, housing investments corresponded to just under
amounted to SEK 309 billion in 2012. By properties is meant 40 percent of total construction investments in 2011-2012. The
everything from multi-apartment buildings and single-family houses sector's average share for the years 1950-1990 amounted to
to industrial, office and public premises. Construction investments approximately 55 percent.
increased sharply during the 1950s and 1960s. During the 1970s Premises mainly consist of office and business premises as well
and well into the 1980s, the Swedish economy had significant as public premises where, for example, schools and hospitals enter.
growth problems and the construction market stagnated. During the The buildings of the manufacturing industry are also included in this
latter part of the 1980s, construction increased. The increase was sub-market. Premises' share of the total construction investments
followed by a dramatic decline during the 1990s. Between 1990 gradually increased from 22 to 40 percent during the period
and 1997, construction investments fell by 35 percent. The 1950-2000. They have since decreased and were recorded at 35
construction industry recovered until 2007 and then exceeded the percent in 2012.
investment volume noted during the first half of the 1970s. Then Facilities include roads and streets, postal and
came the financial crisis in the fall of 2008 and investments began telecommunications, public transport, water and treatment plants
to fall again. Only in 2010, when the economy as a whole turned and electricity and heating plants. During the 1950s, this part of the
around, construction investment also started to rise again. market made up 20 percent of the total construction investments.
Until the beginning of the 1990s, new and remodeling housing After that, it fell gradually and made up 15 percent in the years
was the clearly dominant submarket. Its share of total construction around 1990. In the last 20-year period, the share has amounted to
investment was 57 percent in 1991-1992, but then declined just under 30 percent on average per year.
dramatically and constituted only

Construction investment's share of GDP

Percent 18
16
14
12
10
1950 55 60 65 70 75 80 85 90 95 00 05 10
The construction industry makes a significant contribution to the sector. Another important explanation is the large tax
the country's economic development. Investments in buildings increases on construction and housing in connection with the
and facilities lead to demand for goods and services in many tax reform in the early 1990s. This – combined with an
other parts of the economy over a long period. overheating of the real estate market in the second half of the
Construction investment's share of gross domestic product 1980s – led to the collapse of housing construction and the
(GDP) was around 16 percent in the mid-1960s. After that, in collapse of construction investments during the first half of the 1990s.
terms of trend, it fell to a low of just under 6 percent at the end The rise up to 2007 is mainly explained by increased new
of the 1990s. At the beginning of the 2000s, there was a certain investments in housing. The decline during 2008-2009 is largely
recovery and in 2012 the share of construction investments in due to the sharply reduced investments in new homes. The rise
GDP had increased to 9 percent. after the financial crisis was first driven by new investments in
The reason why the investment share fell over a long period housing and then by new investments in premises and facilities.
was, among other things, a generally weak development of the
Swedish economy, which hit construction relatively hard
6
Housing investments
New and rebuilding
180
160
140
120
100
80
60
40
20 Reconstruction
New construction
0
1950 55 60 65 70 75 80 85 90 95 00 05 10
Investments in housing amounted to SEK 121 billion in 2012. Of At the end of the million program period, the air went out of the
this, SEK 55 billion were new construction and SEK 66 billion were housing market and new production decreased until the mid-1980s.
remodeling investments. Investments in new construction, which The investment volume, however, remained at a fairly even level
steadily increased between 1997 and 2007, began to decline in through investment in reconstruction in the housing sector.
2008 and only in 2010 could an increase be discerned again. The
upswing was abruptly interrupted in 2012. With the exception of In the early 1990s, extensive changes in tax policy were
2008, the reconstruction investments have, on the other hand, implemented, which worsened the conditions for housing
increased continuously during the period 1997-2011. In 2012, construction. The combination of changes in the VAT system,
however, even this began to decline. increased property tax, reduced subsidies, sharply increased real
The housing shortage in the mid-1960s quickly became a interest rates after tax and a deep recession significantly reduced
significant political problem that resulted in the so-called million the demand for new housing. In the early 2000s, the demand for
program. The program meant that one million homes would be built new housing increased, but the development was interrupted in the
within the course of ten years, from 1965 to 1975. These homes fall of 2008 due to financial crisis and low con juncture. Despite high
today face a necessary need for renovation and are a reason why growth figures during the 2000s, the level of total housing investments
remodeling investments have increased in recent years. However, was still significantly lower than the average level during the period
it is above all the introduction of the ROT deduction in December 1970-1990.
2008 that has had a major impact on the continued rise of renovation
investments.

Housing investments
Apartment buildings and single-family houses
SEK billion 2012 prices 80
70
69,7
60
64,7
63,0 62,3
60,3
57,3 58,3
50
52,5
40
30
2006
20
2008
10
2010
2012
0
Apartment building Small house

Investments in multi-apartment buildings and single-family houses Sweden. The new letting form, which is common in the rest of the world,
amounted to SEK 63 and 58 billion respectively in 2012. has had a slow start and only 192 owner-occupied apartments were
Investments in housing are intimately connected with employment, completed in 2012.
interest rates and households' disposable income. An increasing population The construction of rental housing is largely governed by the rent
and relocations within the country are also contributing factors to the regulation found in the utility value system. This system means, among
demand for housing. Political decisions and laws also provide conditions other things, that a tenant can have an agreed rent reviewed and changed
for housing investments. Changes in the economic situation lead to by the rent committee. In an assessment, a comparison is made in
household confidence in the future being affected. The boom in 2006 is principle with the rent in similar apartments owned by municipal housing
reflected in the diagram, as well as the financial crisis and recession that companies (public benefit). If the current rent exceeds the rent for a
began in 2008. The introduction of the mortgage ceiling in October 2010 corresponding flat in the public sector, the landlord must lower the rent.
has above all negatively affected investments in single-family houses, and
these have decreased continuously since 2006. Investments in apartment The utility value system impairs profitability and holds back the private
buildings were greater in 2012 than in 2006, and this is solely due to on construction of rental housing. A new rent setting system was introduced
the increased remodeling volume. in 2010 where the norming role of public utility rent is removed and the
private property owners must be included in the rent discussion. So far,
Of completed apartments in apartment buildings in 2012, just over half there is no indication that this change has contributed to an improved
were condominiums and just under half were rental properties. Since May construction volume compared to the years before it was introduced.
2009, it has been possible to build owner-occupied apartments in
8
Local investments
120
100
80
60
40
20
Private
0 Public
1950 55 60 65 70 75 80 85 90 95 00 05 10
Investments in premises amounted to SEK 107 billion in 2012, of much followed business cycles, while the public sector developed
which SEK 64 billion in private and 43 billion in public. Between at a more even pace. In the early 2000s, business investments
1950 and 1970, investments increased sharply. increased strongly. The positive development came to an abrupt
The development is explained by a strong general economic end in 2009, but has since had an upward trend. Public local
expansion in combination with a rapid expansion of healthcare investments have increased continuously since 2005 and in 2012
and education systems. they were at the highest level since the measurements started.
After the 1970s, the fluctuations have been great. It is above
all the private local investments that in many and

Local investments
Private and public
80
70
60
66,7
63,8
50
54,6
51,7
40
43,1
37,4
30
34,9
30,8
20 2006
2008
10
2010
2012
0
Private Public
Of the 107 billion invested in various types of premises in 2012, the The public actors state, municipality and county council have
state and municipality accounted for just over 40 percent, while continuously increased their investments since 2005. A favorable
businesses and private households accounted for just under 60 percent development of tax revenues and extra support money from the
cent. government has given greater room to invest in investments in
The business sector's investments, which mainly concern business schools and hospitals, among other things.
and office premises, increased between 2000 and 2008. The The state accounts for a relatively small part of the public local
explanation is a rapid expansion of mainly business premises and investments, for example the construction of universities and
external shopping centres. The financial crisis, which began in 2008, colleges.
affected the sector very hard and only in 2012 had it recovered. A
large part of this recovery was due to the mining industry's expansion
in the north, but also to household investments in holiday homes.
10 Sweden's Construction Industries

Capital investments
90
80
70
60
50 In public
40
30
Total
20
Total
Private
10
1950 55 60 65 70 75 80 85 90 95 00 05 10
Construction investments amounted to SEK 81 billion in 2012. The fundamental prerequisite for maintaining long-term high growth in
construction sector includes electricity and heating plants, water the economy. Among the larger projects that were launched at
and sewage treatment plants, transport, post and telecommunications the time can be mentioned the Bothnia Line, the City Tunnel in
as well as roads, streets and railways. Furthermore, the construction Malmö and the Norra länken in Stockholm. going forward are
work that is done in connection with the new production of buildings, Citybanan, Förbifart Stockholm and reconstruction of Slussen.
for example excavation work, is included.
Between 1950 and 1972, investments rose from 20 to 58 billion
kroner (converted to the 2012 price level) only to then fall back and In addition to new and remodeling investments, significant
fluctuate between 45 and 50 billion until the early 1990s. resources are spent on maintaining and repairing existing facilities.
Investments in the traffic infrastructure - roads, railways, airports The exact sum used for maintenance and repairs is difficult to
and ports - then became a core political issue. The Riksdag decided measure. It is likely to be between SEK 20 and 30 billion per year,
to implement a ten-year program totaling SEK 100 billion to expand including self-directed work. This means that construction work is
the capacity of the road and railway networks. It was considered carried out for a total of SEK 100-110 billion per year.
one
11
Capital investments
Private
SEK billion 2012 prices 24
23,6
20 21,2
20,4
18,9
16
12
9,2 9,6
8
7,5 2006
7,0
2008
4 5,0 5,0
4,6 4,5 4,2
4,2
3,6 4,2 2010
2012
0
Electricity, Gas & Heating Water Transport Post & Tele
Just over half of the SEK 81 billion invested in facilities in 2012 can be Investments in post and telecommunications were at their highest in
attributed to the private sector. the early 2000s and reached a maximum of SEK 14 billion in 2002.
In recent years, energy-related investments have increased the fastest, The focus was then on the expansion of broadband and mobile telephony.
and this sub-sector (Electricity, Gas & Heating) accounted for 29 percent The most expansive phase of the expansion has ended, but the 4G
of total construction investments in 2012. The investments include, for expansion meant a sharp increase in investment in both 2011 and 2012.
example, energy companies' investments in new cogeneration plants and Despite this, Post and Tele's share of the total infrastructure investment
expansion of district heating networks. decreased from 20 percent in 2002 to 12 percent in 2012.
The rapid expansion of wind power also means increased private
construction investments.
12
Capital investments
Public
24
23,6
20 21,0 21,3
20,2
18,9
16 17,3
15,6
14,9
12
2006
2008
4
2010
2012
0
Roads and streets Other facilities

The state and the municipalities are responsible for society's During the latter part of the last decade, the differences narrowed
infrastructure and are responsible for public investment in facilities. and in 2010 the distribution between them was relatively even.
Investments in roads and streets increased from roughly 15 to Railway investments increased significantly between 2008 and
almost 23 billion kroner between the years 2000 and 2004. 2010 and this was connected to the short-term investment. This
In part, this was a result of bringing forward projects for the period meant that several large railway projects were started in
2004-2015 that the Riksdag decided on in 2001. 2009-2010, which provided a large investment contribution. Now
Since no further investments were made to expand this part of the effects of this investment have worn off and railway
the infrastructure, road investments remained relatively unchanged investments have fallen relatively sharply over two years. Levels
between 2004 and 2006. The government's short-term investment are now back to the low levels seen around 2005.
in infrastructure that was launched in 2009, as well as an extra Roads and streets made up about a third and other facilities
investment in 2012, meant that road investments received a boost about a fifth of the total investment in facilities in 2012.
during the period 2011-2012.
In the early 2000s, other capital investments – mainly railways
– were considerably smaller than those in roads and streets.


Distribution perlän 2012
Percent 34
32 30 28 26
24
22
20
18
16
14
12
10
Gotland's Blekinge Jämtland's Kronobergs

Västerbotten Södermanland's Värmland
Västra Götaland Stockholm Östergötland Norrbotten Uppsala ScaniaVästernorrland's Kalmar Örebro Halland's Västmanland's Jönköping's Dalarna's Gävleborgs
Source: Byggfakta, BI
A regional breakdown shows that Stockholm County accounted for percentage points compared to 2005. The rise is due to the strong
32 percent (99 billion SEK) of the total construction investments in connection between construction and population growth.
2012. Västra Götaland's share amounted to 18 percent and Skåne's During the mentioned period, the population increased by 12.5,
to 14 percent. The growth counties of Uppsala and Östergötland 8.0 and 4.5 percent respectively in the counties of Stockholm,
were at 5 and 3 percent respectively. The mining boom in the north Skåne and Västra Götaland respectively. Other counties had an
has left its mark and Norrbotten county became Sweden's fifth average increase of 2.4 percent. It is therefore natural that the need
largest construction market in 2012 with a share of just over 3 for urban living, premises and infrastructure is also greatest in
percent. Gotland had the lowest share; 0.4 percent. metropolitan areas.
The three metropolitan counties accounted for a total of 64
percent of construction investments in 2012, and that is an increase of 6
14
Residences
The planning and building permit process
Source: Stockholm's Association of Architects (http://www.stockholmsbf.se/etthusblirtill)

The planning and building permit process (continued)
Preparations Idea gThe land is bought g Land reference g Preliminary study g Investigations g Idea sketch g Proposal to the municipality g
(Steps 1-9) Preliminary examination g Decision on assignment
Planned stage 2-6 years Proposal for a program g Program consultation g The program is approved g Development of a plan proposal g
(steps 10-23) Planning consultation g Adjusted plan proposal g Decision on final proposal g Review g Building committee makes
decision on detailed plan g Decision by municipal council g Appeal county board g Appeal land and environment court g
Appeal Land and environment appeal court g Legal force
Construction phase 1-2 Choice of contract form g Possible feasibility study g Program stage g System design stage g Building permit
years (steps 24-39) stage g Detailed design stage g Have enough been sold? g Production planning g Procurement of resources g Temporary
devices are built g Earthworks g Ancient remains? g Foundation work g Building the house's frame, walls and roof g
Installation and interior g Final control and final inspection
Ownership and management The developer takes over the building g Move-in g Management
(steps 40-42)
The construction of housing is an engine for growth in society with The planning and building permit process involves many actors:
clear connections to the labor market, education, environment and Developers, building contractors, municipalities, county
infrastructure. Within many municipalities there is a great shortage administrations, land and environmental courts, Land and
of housing, something that inhibits local and regional development. Environmental Supreme Court, archaeologists, property owners,
All measures taken to simplify and clarify the conditions for the architects, citizens, politicians, municipal residents, interest groups,
construction of housing are therefore of great importance. associations, inspectors, brokers or intermediary services and last
in line also the resident. At the same time, the process must meet
requirements for constant legal certainty and continuous citizen
The planning and building permit process starts with someone influence. Today, the planning and building permit process contains
getting an idea: housing could be built here! Sometimes it is 42 steps with all these different actors involved in one or more stages.
individual companies, sometimes it is the municipality that takes
the initiative. The company that builds for its own account is called The planning and building permit process is so long and involves
so many actors that it can take 8-10 years to go from idea to reality.
a builder. Some builders build themselves, others hire a construction contractor.
When the house is finished, the builder can either sell it to
someone else or keep it himself to use or rent out.
A project's path from idea to finished home goes through the so-
called planning and building permit process. The table above
shows the 42 steps in this.

The appeals process
Source: Stockholm Architects Association
The pictures on this and the next page show steps 17-23 of the 42- comments on the proposal must be made in writing within the review
step process required to create a house. period. Previously, all planning proposals were presented with an
exhibition, but the new Planning and Building Act only requires that the
The time from when the municipality decides to adopt a planning proposal be available in written form. The municipality can, however,
proposal until the proposal gains legal force is a tricky and unpredictable choose to make an exhibition to present the proposal to the
part of a planning process that usually takes 6-8 years. In the case of municipality's residents.
new construction, examination is often required both through a detailed
plan and through a building permit. A municipal decisions can then be 18. The Building Committee makes a decision on the
appealed in several legal instances. detailed plan The Building Committee examines the plan proposal
and the views that have been received. After that, a final decision is
In 2011, the average processing time for the county boards' handling made that the detailed plan is to be adopted.
of appealed planning decisions was 91 days. For appealed decisions
on permits and advance notices, the processing time was 170 days. 19. Decision by the municipal
Processing times vary greatly between the 21 county administrative council The decision can also be taken by the municipal council, for
boards. example for larger detailed plans and for general planning.
17. Review After

the building board's decision, the proposal is available in written form
for at least three weeks. The one who wants to leave

The Appeals Process (continued)
Source: Stockholm Architects Association
20. The appeal to the county 22. The appeal to the Land and Environment Court of Appeal
administrative board Anyone who has made written comments on the The decision of the Land and Environment Court can be appealed to the
planning proposal and who has not had them satisfied, can appeal the Land and Environment Court at the Svea Court of Appeal. If the appeal is
decision to the county administrative board. Any appeal must be submitted then rejected, there are no further opportunities to appeal. An appeal
to the body that made the decision, usually the building committee, within 3 process can sometimes take several years.
weeks from the day on which the decision was announced on the
municipality's notice board. 23. The detailed plan gains legal force
The detailed plan gains legal force if no one appealed the decision before
21. The appeal to the Land and Environment Court the appeal period has expired or if the Land and Environment Supreme
The County Administrative Board's decision can be appealed to the Land Court rejects the appeal. The detailed plan specifies a given implementation
period. During that time, the property owners have a guaranteed building
and Environment Court. There are five land and environment courts in the country.
right in accordance with the plan's provisions.

Started housing
Quantity
80 000
60 000
40 000
20 000
Apartment building
Small house
0
1950 55 60 65 70 75 80 85 90 95 00 05 10
In 2012, 20,700 new homes were started, of which 15,500 were in multi- 23,500 on average per year. The demographic conditions have
apartment buildings and 5,200 are small houses. Housing construction changed through population growth and increased immigration to
decreased by almost 5,600 apartments in 2012 compared to the large cities. We are also entering a period with large cohorts of young
previous year, which is primarily explained by the general economic people who will establish themselves in both the labor and housing
slowdown during 2012. The decline in housing construction was certain markets. This contributes to the fact that the need for housing - mainly
part also structural because the mortgage ceiling, together with various in the big cities - will be significantly greater than the supply in the next
tax rules, affected the construction of single-family houses in a few years, as too few housing units have been built over a longer
structurally negative way. period.
On average, approximately 66,000 apartments were started per year
during the period 1950-1990. After 1990, the number has amounted to

New production according to form of grant

Quantity
70 000
60 000
50 000
40 000
30 000
20 000
Right of residence
Tenancy
10 000
Right of
ownership (mainly detached houses)
0 1980 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
Source: Statistics Sweden
The number of completed homes has fluctuated over time due to On May 1, 2009, a new form of tenure, called owner-occupied land,
economic fluctuations and various government subsidies. The targeted was introduced in Sweden. So far, it is only possible to build new owner-
subsidies were abolished in 2006, which has created a greater supply occupied apartments, not to convert older homes in the stock.
of condominiums. The recession and financial crisis together with a lack of knowledge on
In 2012, a total of 26,000 apartments were completed, of which 8,600 the part of both consumers, producers, insurance companies and
were owner-occupied, 9,000 condominiums and 8,400 rental properties. lenders as well as rent regulation have meant that the lease form got off
Since the 1990s, there has been a marked shift between the forms of to a slow start. Ownership apartments are common in the rest of the
lease. The previously dominant tenancy has reduced its share, and the world. The form of letting can be described as a terraced house on
tenant right as well as the ownership right have increased their shares. top of it. The owner has actual ownership and disposes of his property.
Today, 48 percent of the population live in ownership, 34 percent in This means, among other things, "free" rentable heat, but not free rent
rental and 18 percent in condominiums. setting.
21
Reconstruction of housing
Number of apartments
50 000
45 000
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000 Completed by rebuilding
0
Contribution*
-5 000
1976 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
* Combining smaller apartments gave a negative addition for a few years. The housing subsidies were removed on 31/12/2006, which means that the 2008 figures
cannot be compared with previous years. Fr. in 2009, only net additions in converted apartment buildings are reported.
The conversion rate for apartments in apartment buildings was high revised with regard to future requirements for efficient energy
in the early 1990s, but has since declined, fluctuating between conversion. A renovation of around 650,000 apartments would
20,000 and 30,000 apartments per year between 2000 and 2007. entail a cost of at least SEK 300 billion, excluding energy-saving
measures. Reconstruction of premises, furnishing of attics and
The need for maintenance in the stock is palpable. The homes of apartment divisions also provide an addition of new homes. In
the record years (built 1961-1975) are facing extensive renovation 2012, 1,679 homes were added through such conversions.
measures. A total of 920,000 apartments were built in multi-family
townhouses at the time, and of these, 70,000 have disappeared Since 1989, 51,000 homes have been added in this way, which
from today's inventory. Barely 20 percent of the remaining 850,000 corresponds to an average of 2,100 apartments per year.
dwellings have been modernized and only a small part of them have

ROOT deduction
Survey regarding the attitude to the ROT deduction
No Do not know
And 2009 2011 2009 2011 2009 2011
Question %% % % %%
Does the ROT deduction contribute to a reduction in undeclared jobs in the
construction industry? 78 90 8 5 14 4
Is it possible to manage the invoice model? 75 84 15 9 10 7
Are written agreements with a so-called ROT clause used 1) 70 65 30 35 - -
Has the ROT deduction affected employment in the company?

24 28 74 68 2 4
2009 2011
Escaped staff- Escaped staff

New hire reduction New hire
7 17 15 14 reduction
1) Written agreement between customer and buyer that regulates what applies between the parties if the Swedish Tax Agency refuses payment.
A permanent ROT deduction (Renovation Ombyggnad To building) those from 78 to 90 percent and the percentage who considered that
was introduced on 8 December 2008. The ROT deduction gives the it is good to manage the invoice model increased from 75 to 84
possibility of a tax reduction for repairs, maintenance as well as percent between 2009 and 2011. In addition, employment has been
conversions and extensions. The tax reduction amounts to 50 percent affected in a positive direction through more new hires and fewer
of the labor cost, but no more than SEK 50,000 per person per year. staff reductions.
The reform has so far worked well and in 2012 the Swedish Tax
From 1 July 2009, the so-called invoice model is used to Agency paid out SEK 14.6 billion in ROT deductions for work carried
administer the deduction. It means that the customer first pays his out. The customers pay an equal amount plus the equivalent of 30
share and that the company then requests payment from the Tax percent of the contract cost for materials. The industry thus generated
Agency for the remaining part of the invoice. approximately SEK 38 billion in ROT work in 2012.
In autumn 2009, Sveriges Byggindustrier together with seven
other industry and employer organizations conducted a survey The big advantage for the industry is that white jobs increase and
among companies in the construction industry regarding their attitude that healthy competition is strengthened. The state's tax revenue
to the ROT deduction and the invoice model. Roughly 20 percent of increases because more people buy white-collar jobs. A turnover of
the roughly 10,000 companies answered this survey. Two years later, SEK 38 billion means that the state receives around SEK 20 billion
a follow-up was made and the response rate was then 25 percent. in various taxes and employer contributions. For the employees in
The result gives a positive picture by, for example, the percentage the companies, there are profits because white-collar jobs provide
who believed that the ROT deduction contributes to a reduction in pension points and insurances apply, which is not is the case with
undeclared jobs increases blacks grazing.

The number and size of the dwellings

Completed distribution of apartment size
Quantity
10 000
8 000
6 000
1 room and kitchen
1:a sher 2:a

4 000 with/without kitchenette
2 rooms and a kitchen
2 000 3 rooms and kitchen
4 rooms and kitchen
5th or larger with kitchen

0
2002 03 04 05 06 07 08 09 10 11 12
According to the population and housing census projections, there habitation during the latter part of the period. The proportion of small
were 4.55 million dwellings in 2012. Of these, 56 percent were apartments (1 bedroom and 1st or 2nd with/without kitchenette) has
apartments in apartment buildings and 44 percent were apartments steadily decreased during the period. In 2002, they made up 31
in small buildings. Just over half (51%) of the housing stock is in the percent of the completed apartments and the share had decreased
counties of Stockholm, Västra Götaland and Skåne. to 10 percent in 2012. In 2012, 26,000 apartments were completed
During the period 2002-2012, 269,000 properties were completed, and of these, 69 percent were 3 rooms or larger. Apartments of at
of which 68 percent were at least 3 ro k. The proportion varied least 5 rooms made up 26 percent and one-bedroom apartments 9
between 58 and 72 percent with a tendency towards the higher percent.

Housing stock by age

Percent
35
30
25
20
15
10
5
Small house
Apartment building
0
-1920 1921-1940 1941-1960 1961-1970 1971-1980 1981-1990 Year of construction missing
Source: Statistics Sweden, Population and housing census 1990
The distribution of residential construction between single-family Only 6 percent of the apartments in apartment buildings were built
houses and multi-family townhouses varies greatly over time. The in 1920 or earlier, while the corresponding percentage for single-
single-family houses were mostly built during the period 1971-1980 family houses amounts to 17 percent. Half of the homes were built
(435,000 or 24%), while most of the apartment buildings were built before 1961. In an international comparison, Sweden's housing stock
during the periods 1941-1960 (30%) and 1961-1970 (28%). In total, has an unusually small proportion of homes built after 1980.
1,250,000 apartments in apartment buildings and 590,000 single-
family houses were built during the period 1941-1970.

Demolition of apartment buildings
Number of apartments
10 000
8 000
6 000
4 000
2 000
0
1950 54 58 62 66 70 74 78 82 86 90 94 98 02 06 10
As the number of vacant apartments in apartment buildings increases, 1998. The number of vacant apartments for immediate rental then
more and more apartments were demolished during the 1990s. One gradually decreased and was recorded at 18,600 in 2008.
reason for this is structural transformation and increased urbanization. After a temporary rise in 2009, the number fell to 16,000 (1.1% of the
In 2012, 566 apartments in apartment buildings were demolished, stock) in 2011.
which is 200 fewer than the year before and one of the lowest listings Many larger municipalities have a few vacant apartments, while several
since the crisis years in the early 1990s. The majority (91%) of the smaller municipalities show a completely different picture.
apartments demolished in 2012 were owned by municipalities or public Close to 12,600 (78%) of the 16,000 available for undivided letting in
utility companies. Almost half were demolished due to the difficulty of 2011 were located in municipalities with fewer than 75,000 inhabitants.
renting, and 78 percent were built after 1960. In 1990, there were just
under 4,000 vacant apartments and the number rose quickly to reach
the peak – 62,000 apartments –

Infrastructure
Freight transport work per traffic type

Billions of tonne kilometres
45
40
35
30
25
20
15
10
Shipping
5
Road traffic
Railway
0
1960 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
Source: Trafikanalys, Trafikverket
Freight transport work is increasing overall, but it is sensitive to the work in 1999. After that, the market share fell and amounted to
economic conditions. Calculated in tonne kilometres, there has 37 percent in 2010, which was lower than for shipping. The weight
been an increase of 130 per cent in the last 50 years. Unlike the and volume share of air transport is marginal, but air freight is
passenger transport market, both shipping and railways have important for valuable goods. For this reason, air freight accounts
relatively large market shares. This is due, among other things, to for approximately 20 percent of the total freight value.
the fact that heavy ore transports go by rail and sea and that they
travel longer distances. The increasing freight transport reflects the rise in trade in
Until the oil crisis in 1973, both truck and sea transport goods, which has been and is the basis for Sweden's economic
increased significantly. Sea transport then declined until the early prosperity. Since 1950, exports have grown twice as fast as GDP,
1990s, while truck transport increased at a slower rate. The and in the last 25 years they have grown even faster. The
maximum truck weight increased step wise from 37 to 60 tons availability of efficient, reliable and high-capacity systems for freight
between 1974 and 1992 when it was also asked to stop allowing transport is an important prerequisite for Sweden to continue to
longer trucks. The increase in load weight and the longer trucks take advantage of the expansion of global trade. The requirements
led to a substantial cost reduction. After 1992, transport work by for delivery precision will gradually increase.
truck increased sharply, reaching a peak of 42 percent of total
freight transport

Passenger transport work per traffic type

Billions of passenger kilometers
120
100
80
60
40
Passenger car + motorcycle
20 Railway
Bus, tram, subway

Domestic aviation
0
1960 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
Source: Trafikanalys, Trafikverket
Passenger transport work increases steadily over time. During the the bet markets (commuting regions) have therefore decreased from
last 50 years, total transport in Sweden has increased at a 187 to 75 since 1970. For almost all municipalities, commuting and
significantly faster rate than GDP. As can be seen from the diagram, regional expansion have a positive effect on the municipalities'
passenger car traffic had a strong growth until the end of the 1980s. growth, labor supply and wage levels.
Car traffic grew at the same time as large parts of the railway network Commuting and regional expansion have been shown to increase
were shut down. material prosperity and there are high hopes that investments in
During the latter part of the 1990s, both the road and rail systems infrastructure and more efficient transport systems will enable a
were improved, with new railway stages being put into use. After continued rapid development of commuting.
that, rail traffic has also increased. Domestic air traffic started in the Regional expansion does not only mean longer journeys to work.
late 1950s, but had a modest volume during The 1960s. During the Even in the rest of our lives, we move over larger geographical areas.
1970s and 1980s, air traffic expanded and travel by domestic air The phenomenon therefore contributes to an increase in total travel.
increased by almost 600 percent between 1970 and the peak year This means that regional expansion is not compatible with sustainable
of 1990. growth if we cannot simultaneously reduce the need for travel in
Passenger transport, measured in the number of passenger other respects than work commuting by, for example, creating
kilometres, has increased almost twice as much as GDP during the densified and more functionally mixed urban and suburban
same period. One explanation is the increasing professional environments. This, in turn, requires better social planning as well as
specialization which means that people move in ever wider circles a deepened cooperation between different government authorities
around their home. This is to find a job that corresponds to education and between different local and regional actors.
and work experience. The local ar

Infrastructure investment's share of GDP

Percent
1,40
1,20
1,00
0,80
0,60
0,40
Total infra
Railway
0,20
Way state
Road municipality
0,00
1993 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
A number of structural factors, including a sparse population to stabilize at a level of around 1.0 percent of GDP over the past
pattern and strong urbanization pressure, suggest that Sweden two decades.
should invest relatively much in infrastructure. Despite this, When the economy grows, the load on roads, tracks, electricity
available international statistics show quite clearly that Sweden grids, water and sewage etc. increases. This means that the
has for a long time invested less in infrastructure than other, total value of the infrastructure should grow in the long term at
mature industrialized countries. the same rate as GDP. However, the last three decades have the
The low levels of investment are also clearly visible when value of the infrastructure, according to calculations from the
today's infrastructure investments are placed in a historical technology consultancy WSP, increased significantly slower than
context. Over the past 50 years, total investments in infrastructure GDP. At the end of the 1970s, this value corresponded to nearly
have more than halved. Investments amounted to nearly 4 percent 80 percent of GDP, but has since fallen and today amounts to
of GDP in the mid-1960s. During the 1970s and 80s, the around 60 percent.
proportion fell continuously

Financing solutions
In order to speed up various forms of infrastructure projects, there are various forms of financing solutions these days. How do you feel about
the following forms of financing solutions for infrastructure investments? (1 = Very negative & 5 = Very positive)
Average values
5
5
4
4
3
3
Every
The moderates
2 The People's Party
2
The Christian Democrats
3,26 2,87 2,78 2,62 The Center Party

The Social Democrats
1
1 The Green Party
The left party

The Sweden Democrats
0
0
OPS/PPP Municipal Municipal co- User financing (e.g. bridge
(public-private partnership/ advance payment - To advance financing toll, road toll, etc.)
Public private partnership) projects
Source: Demoscope
Investments in transport infrastructure are normally financed with grants financing, construction, operation and maintenance during a long-term
above the state budget. It has often been difficult to get the budget commitment of normally 20-30 years.
sufficient to renew the infrastructure to the desired extent. Through municipal advances (loans), the construction of public roads
The long-term national plan can therefore be expanded by combining and investments in railway facilities can be laid earlier.
government investments with financing from other stakeholders. One
motive for using alternative forms of financing is to advance investments In a municipal/ regional co-financing, the state normally provides the
within the framework of existing plans or to be able to carry out certain majority of the financing. The municipality/region can contribute with a
large projects at all. Another is to receive more stable funding conditions lump sum, payment in step with construction or through annual
than the annual grant allocation. compensation in step with functional improvements.
A user fee is charged to those who use an infrastructure and it must
With the help of Demoskop, Sweden's Construction Industry finance or contribute to the financing of the investment.
conducted a survey in which 6,467 interviews were conducted with
municipal politicians and 732 with county council politicians. Among other The diagram reflects the views of the political parties in the country's
things, the survey contained a question about how to approach the parliaments on alternative financing solutions to speed up urgent
financing solutions described below to speed up infrastructure projects. infrastructure projects. Most advocate OPS/PPP. The results from the
interviews with municipal politicians show that they also advocate OPS/
OPS/ PPP is a collaboration between the public and private sectors PPP over the other alternative financing solutions. The survey also
where the latter provides a public service against a compensation that shows that the political parties generally believe that the need for
comes from the users or the state. Broadly speaking, this means that the investment is almost as much infrastructure as housing.
private sector takes overall responsibility for planning, fi
31

The structure of the industry

Number of companies in the construction industry

2012
Number of employees
Total 93 675
500- 29
200-499 35
85
100-199
292
50-99
20-49 1 589
10-19 3 162
5-9 6 049
1-4 27 618
54 816
0
1 10 100 1 000 10 000 100 000
Source: Statistics Sweden Number of companies
Within the business world as a whole, there were 1,137,000 companies in amounted to 59 percent. That the proportion of workers is large is not
2012. Of these, 93,700 were active in the construction industry, which means surprising as the construction industry is a craft-based industry.
that 8 percent were active in this industry. Among the construction companies,
87 percent had a maximum of 4 employees and in these companies there The construction sector is largely local and national, although international
were 13 percent of all employees in the construction industry. competition has increased in recent years. This applies to the entire
construction chain from property ownership and consulting services over the
A breakdown of the companies in the construction industry by area of building materials industry to the construction contractors.
activity gives the following distribution: 23,000 building and installation The number of companies in the construction industry (SNI 41-43) where more
contractors, 12,500 demolition companies and companies for ground and than half of the shares' voting value is held by one or more foreign owners
foundation work, 19,600 building installation companies (electricity, plumbing, was 386 in 2012, i.e. less than 0.01 percent.
etc.) and 38,600 companies for final treatment of buildings (building carpentry, The corresponding share within the entire business sector amounted to just
flooring, painting, glasswork, etc.). over 1 percent.
The construction industry is characterized by having many small businesses Among BI's members, on the other hand, 1.6 percent are foreign companies
and consequently a large proportion of those employed are self-employed. In (51 out of 3,120). The most common countries of origin are Poland and
2012, the proportion of self-employed persons amounted to 21 percent. Germany.
The white-collar workers made up only 20 percent, while the workers

Building and construction contractors

Size structure 2012
Change compared to 2010
Company size Business Employees Business Employees
(average number of employees) Quantity % %* Quantity % Quantity % Quantity %
0 13 455 6 58 2 696 25
1 -4 754 29 71 12 429 13 1 508 29 2 622 27
5 - 19 2 200 10 23 19 388 20 440 25 3 708 24
20 - 49 426 2 4 12 656 13 88 26 2 916 30
0 - 49 22 835 99 98 44 473 45 4 732 26 9 246 26
50 - 99 114 <1 1 7 754 8 40 54 2 665 52
100 -199 37 <1 <1 4 860 5 10 37 1 142 31
200 -499 17 <1 <1 4 752 5 11 183 3 168 200
500 - 15 <1 <1 36 400 37 8 114 9 057 33
50 - 183 1 2 53 766 55 69 61 16 032 42
Amount 23 018 100 100 98 239 100 4 801 26 25 278 35

*
Percentage of companies with employees
The above compilation includes only companies that are classified Between 2010 and 2012, the net increase in companies
as building and construction contractors, SNI 41 and 42 according amounted to 4,801, of which 4,204 had less than 5 employees. In
to the Swedish industry classification. In 2012, these rose to total, they increased the number of employees by nearly 25,300
23,000, but nearly 13,500 had no jobs then. (Compare with the people during the period. However, this sharp rise came after a
number from the previous page, which also includes SNI 43 decline of 18,700 people between 2008 and 2010, i.e. in the wake
Specialized building and construction contractors). of the 2008 financial crisis and recession.
Among companies with employees, only 2 percent had at least

50 employees, but just over half (55%) of the employees were in
these companies.

The 10 largest construction companies

2012
Turnover of contracting activities in Employees
Sweden in Sweden
No. Business MSEK Quantity
1 Must 37 289 12 644
2 NCC 31 338 10 060
3 Skanska 31 060 10 814
4 JM 9 982 2 021
5 SVEVIA 7 158 2 364
6
Veidekke Sweden 4 609 1 069
7 Infranord 4 516 2 682
8
Strabag Sweden 3 266 712
9 Lemminkäinen 2 144 416
10 Infratek Sweden AB 1 529 724
Source: Solidity, CreditSafe and BI
With a turnover of more than SEK 31 billion in Sweden, Peab, NCC poisons have been used with the aim of limiting contracting activities
and Skanska were the three largest construction companies in 2012. to the Swedish market.
A further four companies had a turnover in excess of SEK 4 billion. Turnover refers to income in the contracting business including
side income, for example property management.
The above compilation is based on annual reports for 2012. For By employees is meant the average number of employees in Sweden
parent companies in a group, the group information is reproduced. during the financial year.
Where applicable, the operating branch has

Newly started construction companies, construction companies in bankruptcy
Quantity
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000 Start-up construction companies
Construction company in bankruptcy

0
1995 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Source: Growth analysis, Statistics Sweden
The number of newly started construction companies amounted to almost it is due, among other things, to the fact that a relatively small capital
7,000 in 2012 and accounted for 10 percent of all companies that were investment is required to start a construction company.
started last year. Despite the fact that Sweden went through a deep Bankruptcies have increased continuously over the past five years.
recession in 2009, the number of newly started construction companies The introduction of the ROT deduction probably dampened the rise in
increased sharply during the period 2010-2011. The rise can be largely 2009 and 2010, but in 2012 this dampening effect disappeared. The
explained by invoice the model's introduction for ROT deductions (July competition has also intensified because relatively many new companies
2009). During last year's economic slowdown, the "ROT deduction effect" were started in recent years and this, together with the weakened
has disappeared and new start-ups fell relatively sharply compared to economic development in 2012, left an impression on the bankruptcy
2011. statistics. In total, just over 1,200 construction companies went bankrupt
In comparison with the majority of other industries, relatively many in 2012. This is a level that can be compared to that in the early 1990s.
companies are started each year within the construction industry. Renew The vast majority of companies that go bankrupt are small and have no
the set number, i.e. the number of new companies in relation to existing or a few employees.
ones was 7.6 percent compared to 6.2 in business life as a whole. Differ

Labor market
Acquisition work in the construction industry
Thousand %
400 8
SNI 45 SNI 41-43

350 7
300 6
250 5
200 4
150 3
100 2
50 1
% of all gainfully
employed
0 0 The construction industry
1987 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
From 2007, the data refer to gainfully employed persons aged 15-74 (previously 16-64)
During the last twenty-five-year period, employment in the The deep economic downturn in autumn 2008 meant that
construction industry peaked in the early 1990s with 322,000 conditions on the construction market deteriorated very quickly.
people, which corresponded to 7.2 percent of the entire labor Despite this, the number of employed people increased by 5
market. percent in 2008 compared to the year before. One explanation
A gradual reduction of nearly 100,000 people took place could be that notice is given a few months before a dismissal,
between 1992 and 1997. Relatively speaking, this decline was another that some notice was withdrawn. For the construction
greater than that of the labor market as a whole, and the share industry, the economic downturn hit in 2009 and caused the
employed in the construction industry fell to 5.5 percent of all number of jobs to fall by 4 percent. The market recovered
gainfully employed people. After that, an increase was noted quickly, however, and in 2012 the number was up to 312,000,
until In 2008, the number amounted to 305,000, which then making up 6.8 percent of all gainfully employed people.
corresponded to 6.7 percent of all gainfully employed people.

Gainful employment in the construction

industry - age distribution
Quantity
40 000
35 000
30 000
25 000
20 000
15 000
10 000
2005
5 000
2010
0
16-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-
The biggest change in the age distribution among contract workers A breakdown of the construction industry into the subsectors
in the construction industry between 2005 and 2010 can be seen in houses and construction shows that in 2010, 80 percent were
the age groups 20-24 years and 60 years and older, respectively. employed in the housing sector and 20 percent in the construction
Together, these two groups increased by 23,400 people, or almost sector. The age structure within the two subsectors differs, among
half of the total increase of 50,700. The age distribution among the other things, in that the proportion of 60 years and older was greater
gainfully employed is interesting, not least to give a picture of the in the construction sector (14.0%) than in the housing sector (11.2%).
need for new recruitment due to retirements. In 2010, 35,200 of Another difference is that new recruitment in recent years has been
those for enlisted workers in the construction industry 60 years or significantly greater on the housing side than on the facilities side.
older and most are expected to leave the labor market during the Within the housing sector, the proportion of people aged 24 or
period 2010-2014. younger amounted to 14.6 per cent, while the corresponding
The corresponding number five years earlier was 25,200. The need proportion within the construction sector was 10.8 per cent. The
to recruit for retirement thus appears to be significantly greater construction side thus has a larger proportion aged 60+ and has had
during the five-year period 2010-2014 compared to the previous weaker new recruitment.
one. However, one factor that speaks against this is that more and
more people are working after the age of 65. In the construction
industry, the number of people aged 65+ increased from 2,200 to
11,900 during the period 2001-2011.


- proportion of women
%
10
2005
2010
0
16-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60- 16-
The construction industry is a male-dominated industry where the proportion of and 2008/09; from 133 to 678. The percentage thus rose from 3.1 to 9.4 percent
women has been around 8 percent for the past ten years. It is above all on the of students in year 1. The last three academic years saw the number of students
professional worker side and among engineers/technicians that women make decrease, but the percentage of women increased and amounted to 9.9 percent
up a small proportion (roughly 1 and just under 8% respectively in 2010). in the 2011/12 academic year.
However, interest in professional worker training has increased considerably A division of the gainfully employed by level of education shows that it is
over the past ten years. The proportion of women among those registered on above all among those with a post-secondary education of at least 3 years that
university engineering education then varied between 21 and 31 per cent, and women make up an increasingly large proportion. Between 1993 and 2010 it
the proportion of women among professional engineers/technicians increases increased from 19 to 30 per cent
accordingly. cent.
In the upper secondary school's building and construction program, the
number of women in year 1 gradually increased between the academic years 2002/03


- born abroad
Quantity
30 000
25 000
20 000
South America
Oceania
15 000
North and
Central America
10 000 Asia
Africa
5 000
Europe excl. North
The Nordic countries excluding Sweden

0
2002 03 04 05 06 07 08 09 10 11
Source: Statistics Sweden. BI
Sweden's population aged 16-64 amounted to 6.1 million in 2011, and Overall, the number of gainfully employed people in the construction
of these 1.1 million people were born abroad. During the last ten-year industry increased by 32 percent between 2002 and 2011; from 239,000
period, the proportion of people born abroad in the said age group rose to 314,000. 1) Among those born abroad, more than one was noted for
from 14.1 to 18.1 percent. duplication; from 12,900 to 28,200. Most originated in European countries
Among those gainfully employed in the construction industry, the and they amounted to 22,300 in 2011. Relatively speaking, however,
proportion of foreign-born was 9.2 percent in 2011, which should be people born outside Europe increased the most and the number rose
compared with 14.1 percent in the rest of the labor market. Relatively from 2,150 to 6,450 (200%) during the period.
speaking, however, the number increased more for the construction
industry (123%) than for the rest of the labor market (36%) during the period 2002-2011.
1) The numbers are taken from Statistics Sweden's register-based labor market statistics (RAMS) and these differ from the data from the Labor Force Surveys (AKU).

Employees in the construction industry

Distribution by business area
Quantity
300 000
250 000
200 000
150 000
Specialized building
and construction
100 000 contractors
Plant contractors
50 000
Construction contractors
0
2001 02 03 04 05 06 07 08 09 10 11 12
The construction industry can be divided into the three areas of During the last ten-year period, civil engineering construction
activity Building contractors (SNI 41), Construction contractors has increased more than house construction. It reflects on the
(SNI 42) and Specialized building and construction contractors employees in such a way that a certain shift from construction
(SNI 43). The third business area includes, for example, plumbing, contractors to construction contractors has taken place. The
electrical installation, floor covering, painting and glasswork. percentage of employees among construction contractors
decreased from 29 to 26 percent, while it increased from just
During the period 2001-2012, the total number of employees under 5 to 8 percent among construction contractors. Specialized
in the construction industry increased from 180,000 to 262,000. building and construction contractors had 66 percent of the
In 2012, 68,000 of the employees were employed by construction employees both at the beginning and at the end of the period.
contractors, 21,000 by civil engineering contractors and 173,000
by specialized construction and civil engineering contractors.

Employed and unemployed construction workers

Professional members of Byggnads
Quantity
160 000
140 000
120 000
100 000
80 000
60 000
40 000
Professionals
20 000
Employed
Unemployed
0 1970 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
Source: Arbetsförmedlingen, Byggnads, IAF
During the 1970s and 1980s, the percentage of unemployed same members and thanks to a weak upswing in the economy,
construction workers in Byggnad's membership varied between 2 the number of unemployed fell to 7 percent in 2001. This was the
and 10 percent. In the early 1990s, it increased dramatically. As a lowest level since 1991, but a high level compared to the 1970s
result of, among other things, the sharp decline in housing and 1980s.
production, unemployment rose from 5 to 25 percent of the In the following years, unemployment increased and had reached
professional members. 10 percent in 2004. The upward trend then reversed and in 2008
The boom years at the end of the 1990s made it possible to 4.1 percent were noted as unemployed. In the wake of the financial
find work in other industries and this led, among other things, to crisis in the fall of 2008, a new peak – 8.9 percent – was reached
approximately 20,000 construction workers leaving the construction in 2009. However, the market quickly began to recover and the
industry. The number of unemployed decreased, albeit at a share had decreased to 5.3 percent in 2012.
somewhat slower pace than the rate of membership departure.
During the last ten-year period, Byggnads has had around 100,000 professionals

The high school's construction and facilities program

Quantity
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000 Primary searcher
0 Students in year 1 (ht)
2002/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12
Source: Swedish National Agency for Education
During the years 1987-1992, the number of first-time applicants to the high Within the construction program there are specializations for the
school's construction program was more than the number of student traditional construction professions such as bricklayers, concrete, wood
places. Interest in construction education was at its greatest during the and construction workers as well as painters and sheet metal workers.
period 1988-1991, when between 5,000 and 7,000 young people applied each year.
There is also the opportunity to train students for special occupations such
At most, there were 2.2 first-choice applicants per education place. During as construction machine operators, hole diggers, scaffolders, roof, false
the long slump that hit the construction industry in the 1990s, interest ceiling and stone installers.
cooled markedly and the number of first-time applicants reached its lowest In the fall term of 2011, a new high school was introduced and the name
level – approximately 1,500 – in the academic year 1998/1999. of the construction vocational education is now the Building and construction
program. The specializations within the program are house building,
The 3-year construction program gradually increased in popularity construction, painting, sheet metal shop and a new one for construction
between 1998 and 2007. The number of first-time applicants then rose operators. As before, there is also the opportunity to train in specialist
from 1,500 to 7,500 and then decreased by a few hundred in 2008. As occupations.
interest in construction education grew, the number of student places One novelty is that at least half of the education must be able to be
increased. passed as a so-called high school apprentice. In that arrangement, the
More and more women are applying for construction education, and school must delegate the vocational training task to a company.
during the last ten-year period the percentage of women in year 1 increased
from 3.4 to 9.2 percent.

University engineering education – construction technology

Registered students (year 1)
Quantity
1 400
1 200
1 000
800
600
400
200
Women
Men
0
1999 00 01 02 03 04 05 06 07 08 09 10 11 12
Source: The collaboration group for engineering education
New recruitment of managerial personnel to the construction industry is college University. They have different titles and some common ones are
made among those who have university engineering education in construction production manager, construction/installation engineer and
construction technology and among university of applied sciences construction manager. The courses are flexible and reviewed regularly.
graduates, but also from the professional worker ranks. The number of The total number is between 300 and 400 students per year and the
people who started higher school engineering education with a focus on degree of establishment in the labor market is among the highest in the
construction increased steadily during the period 1999-2008, from 600 to area of the Vocational Higher Education Authority.
1,200, and has since been around 1,100-1,200.
The courses within the University of Applied Sciences (formerly KY)
are two years long. Some of these shorter courses are also available within

Energy and Environment

Energy use in buildings

Energy for heating and hot water in homes in 2011
kWh/m2 , year
180
160
140
120
100
80
60
40
Small house
20
Apartment building
0
-1940 1941-1960 1961-1970 1971-1980 1981-1990 1991-2000 2001-
Year of construction
Source: The Swedish Energy Agency, BI
Sweden's total energy use has been approximately the same since In apartment buildings, district heating is the most common heating
1970 and amounted to 382 TWh in 2011. However, the energy method and is used for approximately 85 percent of the apartment
turnover in the housing and service sector has decreased and was area. Even in premises, district heating is the most common heating
147 TWh in 2011, compared to 165 TWh in 1970. The statistics also method. The use of oil for heating is almost completely phased out.
include energy used in agriculture , forestry and fishing as well as
for street and road lighting, sewage and treatment plants as well as The diagram shows that the later a home is built, the less the
electricity and water plants. It is therefore not possible to determine average energy use for heating and hot water. This is due to at least
exactly how much energy is used in buildings. However, studies three things: Firstly, oil has been replaced by electric heating or
from the Housing Authority show that energy use in buildings district heating, which means that conversion losses are moved from
amounts to just over 30 percent of Sweden's total energy use. the buildings to the power plants. Secondly, the number of heat
Energy use is affected by the outdoor temperature because a large pumps has increased. A heat pump delivers up to three times more
part goes to heating and it is worth noting that 2011 was warmer energy than is used for operation. Thirdly, building technology has
than a normal year. improved, for example, so-called cold bridges have been reduced
In single-family houses, the most common heating method is and more energy-efficient windows are used.
electric heating, including heat pumps. Almost 40 percent of the
detached houses have a heat pump. The use of heat pumps has
previously increased sharply, but the increase has slowed down in recent years.

Energy requirements for buildings
kWh/m2 Atemp, år
Zon I Zone II Zone III
Type of building
Homes with electric heating, including heat pump 95 75 55
Dwellings that have a heating method other than electric heating 130 110 90
Premises with electric heating, including heat pump 95 75 55
Premises that have a different heating method than electric heating 120 100 80
Source: Boverket's building regulations (BBR 19)
O O
The Norwegian Housing Agency's building regulations (BBR) state that nader. The requirement is 0.4W/ , C for homes and 0.6W/m2 , C
buildings must be designed so that energy use is limited through low heat m2 for premises. In addition, there are requirements for the highest installed
losses, low cooling requirements, efficient heat and cold reversal and efficient electrical power for heating in electrically heated homes and premises. For
electricity use. The building regulations apply to the construction of a new premises, energy use may be increased to compensate for increased ventilation
building and to extensive alterations and additions to buildings. Requirements needs, so-called hygiene air flow. This is not included in the table above.
for the building's specific energy use are expressed in the annually purchased
amount of energy per square meter of floor Energy from solar collectors or solar cells on the building does not need to
O
surface that is heated for more than C. The requirements are specified for be included in the energy use if it is used in the building.
10 homes and premises and for three different climate zones, where zone I is
the counties of Norrbotten, Västerbotten and Jämtland, zone II is the counties In addition to the BBR requirements, several municipalities set their own
of Västernorrland, Gävleborg, Dalarna and Värmland and zone III is the rest of energy requirements for new buildings that are erected on the municipality's land.
Sweden. Stricter requirements apply if building the nade is heated with These so-called special requirements vary from municipality to municipality.
electricity than if it is heated in another way.

In BBR, there are also requirements for the highest permitted average heat
transfer coefficient, so-called Um value, for construction

Energy and environmental classification of buildings

Certified buildings as of 31 December
Quantity
600
500
400
300
Bream
LEED
200
Environmental construction
Green building
100
The Swan (small house)
The Swan (apartment building)
0
2008 2009 2010 2011 2012
Source: Sweden Green Building Council, Environmental Labeling Sweden AB
Energy and environmental certification is used to assess and report on fabricates 16 different indicators in the areas of energy, domestic climate
a building's energy and environmental performance and aims to make it and chemical substances. Environmental construction can be used for
easier for clients and tenants to choose a sustainable alternative. The new buildings, conversions and extensions as well as existing buildings.
number of environmentally certified buildings in Sweden has more than Single-family houses, apartment buildings and most types of premises
can be classified.
doubled in the last four years
the years. Green Building focuses solely on energy use. A certified building must
BREEAM is a British system that has existed since 1990. The building have reduced energy use by at least 25 percent compared to before or
is assessed in areas such as energy use, indoor climate, water compared to the Swedish Housing Agency's new building regulations.
management, waste management, land use, impact on the local
environment, proximity to communications, choice of building materials The Swan is a Nordic environmental classification system in Sweden
and emission of pollutants. The Sweden Green Building Council has that is administered by the state-owned company Miljömarking Sverige
adapted BREEAM to Swedish conditions and since 1 May 2013 BREEAM- AB. Swan marking of small houses has been possible see
SE has been used in Sweden. since 2005 and since 2009, apartment buildings and preschool buildings
can be labeled. The labeling only applies to new construction.
LEED is an American system that is mainly used for commercial Passive House FEBY 12 is an energy classification system
properties. The building's environmental performance is assessed in the administered by Sweden's Center for Zero Energy Houses. The system
areas of local environment, water use, energy use, materials and indoor has three levels: Mini energy house, Passive house and Zero energy
climate. Today, there are over 13,000 LEED-certified buildings in over 100 house. The goal is to minimize transmission and ventilation losses. Both
countries. existing and new homes and premises can be classified.
Miljöbyggnad is a Swedish environmental classification system that be

Reduction of hazardous substances in building materials

IT JUST IS
Number of suppliers in the Basta system
350
300
250
200
150
100
50
New suppliers
0 Total
2005 2006 2007 2008 2009 2010 2011 2012 - June 2013
Source: BASTAonline AB
BASTA is a tool for everyone who buys and uses construction Only products that meet these requirements can be registered in the
products and materials. The tool ensures the selection of safe database.
construction materials. The aim is to phase out dangerous substances Product selection via BASTA can be made directly in the database
from building products, buildings and constructions. or by referring in construction documents to the fact that products
The products in the BASTA system are assessed based on chemical included in a project must be registered in it. The person who chooses
content. The assessment is based on a number of property products does not need to be a chemical expert because the
requirements that the chemical content of the products must meet. It responsibility in BASTA rests entirely with the supplier. The database
is the product supplier himself who is responsible for the assessment. is accessible to everyone and searching for products is free of charge.
In addition, the supplier is required to have documentation in the form The BASTA system has been in operation since 2005 and BASTA
of content declarations, safety data sheets, investigation summaries online AB, which owns and operates the system, was formed in 2007.
or similar that can support the assessment. BASTA is run as a non-profit limited company jointly owned by IVL
Suppliers who participate in the system have signed an agreement on Swedish Environmental Institute and Sveriges Byggindustrier.
the requirements for competence, documentation, audits and more.

Costs
Costing a housing project

PRODUCTION COST CONSTRUCTION COST
Construction cost
17 % Transport
Moms Machines
Overhead costs
19 %
39%
The developer's costs* including
22 % land acquisition and municipal
fees
45 % Material
12 %
28 %
61% Officials
9%
UE craftsman
9%
5%
Salary cost
5% TBM m.fl.
18 %
(Construction worker)
11 %
*
planning, control, inspection, guarantee,
insurance, credit interest
Production cost is the total cost of a construction project after all Construction cost refers to ground and excavation work,
steps in the construction process are included; land acquisition, construction of the building and rough and fine planning of the land.
planning, municipal fees, control, inspection, guarantees, insurances, The construction cost also includes connection costs for electricity,
credit interest, contract work and value added tax. district heating and cable TV.
The client's cost mainly refers to planning, credit (interest cost)
The total production cost in a housing project can be divided into • and the client's own administration.
Land cost • Construction cost • Builder cost Land and material costs
are significant parts of the total production cost and both have The diagram shows the share of the various cost items
increased in proportion in recent years. apartment buildings and is based on projects built in 2003.

Development of production costs

Index (1998=100)
500
450
400
350
300
250
Land cost
200
Total production cost
150 Construction cost
KPI
100
1998 99 00 01 02 03 04 05 06 07 08 09 10 11
The production cost for apartment buildings increased by 130 percent na are the actors who have the greatest opportunity to influence the
to SEK 34,526 per square meter during the period 1998-2011. The cost because they sit on the planning monopoly and thus can influence
construction cost made up 79 percent of the production cost in 2011 the price trend by controlling the supply of land.
and it is above all this that influenced the development. Relatively This can be clearly deduced from Statistics Norway's statistics, which
speaking, however, the land cost increased more than the construction show a large difference between the cost of land for condominiums and
cost and thus has affected the total production cost to an increasing for rental properties. For condominiums, it was SEK 10,338 per square
degree. This is especially clear after 2006. meter of apartment area, while it was SEK 3,475 for tenements in 2011.
The cost of tenements was thus one third of that for tenements. The
The share of land costs in total production costs increased from 11 corresponding comparison for 1998 shows that the difference then was
to 21 percent during the period 1998-2011. significantly smaller and that the cost of rental properties was 60 percent
The cost of land then rose by 470 percent to SEK 8,023 per square of that of housing
meter of apartment area, while the construction cost almost doubled. dishes.
Between 2010 and 2011, land costs accounted for almost half of the The most important explanation for the increase in construction costs
total increase in production costs. during the period 1998-2011 is rising material prices, which are largely
determined on the international market.
The most important explanation for the skyrocketing of land costs is
that landowners have started to charge more.Municipalities

Property price trends

Index (1981=100)
800
700
600
500
400
Apartment house
300 Leisure house
Small house for

200
permanent residence
KPI
100
1981 86 91 96 01 06 11
Property prices rose sharply during the latter half of the 1980s. The economic Between 2009 and 2010, prices again increased sharply across the country
crisis in the early 1990s put an end to this development and the price level fell and especially for apartment buildings, which rose by 14 percent. The increase
three years in a row. for detached houses and holiday homes was half as large (7%). After that, the
In the mid-1990s, prices began to rise again at a rapid pace. trend has slowed down. During 2012, prices for both detached houses fell and
Both low interest rates and increased disposable income contributed to this. For holiday homes. Prices for apartment buildings have had the strongest increase
apartment buildings, an increased conversion to housing town rights has also since 2010, but they rose only marginally in 2012.
affected the price increase.
The economic crisis in the fall of 2008 meant that the price development Looking at the entire period 1981-2012, property prices have
slowed down for all property types. The regional variations were significant and increased significantly more than the consumer price index (CPI).
both price rises and price falls were greater in the big cities than in other regions.

Factor price index for multi-apartment buildings
Index (1990=100)
240
220
200
180
160
140
Material
120 Total factor price index
Labor wages
100 KPI
Builder's cost
80
1990 92 94 96 98 00 02 04 06 08 10 12
The factor price index (FPI) includes the cost of materials, labor The cost of labor wages rose sharply in the late 1980s (10-11%
wages, machinery, transport, fuel and electricity as well as a three- per year), but slowed and even declined during the recession of the
preneur's overheads and builder's costs. The diagram shows the 1990s. The rate of increase has since averaged 3.6 percent per year.
development for FPI in total as well as for materials, labor wages and
builder's costs. Until 2004, the developer's cost was half of credit (interest costs),
Between 1990 and 2012, the FPI for apartment buildings increased but after a review of the weights in the FPI, the proportion fell to just
by 94 percent or 3 percent on average per year. In the mid-1990s, the under 30 percent. In the diagram of, interest rate changes are therefore
FPI increased by just over 7 percent, but then the rate of increase reflected more clearly before than after 2004.
moderated and was around 3 percent for a number of years. After As a result of the financial crisis, costs fell by 9 percent between 2008
2003 and until the financial crisis in 2008, there was a steady increase and 2009. They have since risen and in 2012 they were back at the
with an average of 6.5 percent per year . same level as before the crisis.
The cost of materials had the strongest development during the The tax reform in the early 1990s is reflected in the consumer price
period 1990-2012 and then rose by 132 percent, which corresponds index (CPI), but not in the FPI, which is expressed excluding VAT. The
to 4 percent on average per year. The development was dampened to FPI therefore increased by only 7 percent between 1990 and 1994,
1.6 percent between 2008 and 2009, only to more than double the while the CPI rose by 20 percent.
following year. After that, the rate of increase has slowed and in 2012 The CPI has subsequently increased by 23 percent or 1.3 percent on
it was just over 2 percent. average per year.

Operating and maintenance costs for multi-apartment buildings

2011
25 %
33 %
Administration and property management
Heating
VA, garbage disposal, sweeping, property electricity

19 %
8% Miscellaneous
Maintenance
15 %
Costs for apartment buildings can be divided into operation, capital and the private companies remained at SEK 363, of which SEK 115
maintenance. Data for capital is missing and therefore cannot be constituted costs for administration and property maintenance.
reproduced. The maintenance cost is about half as large as the The heating cost was slightly higher for private housing companies
operating cost. in comparison to the municipal ones. The average operating cost for
The average operating cost (excluding capital costs) for a tenancy apartment buildings amounted to SEK 110 per square meter. Municipal
in an apartment building amounted to SEK 393 per square meter in companies, on the other hand, had significantly higher maintenance
2011. Administration and property management, which was the largest costs, SEK 244 per square meter compared to SEK 138 for private
sub-item, amounted to SEK 144 and heating to SEK 110 per square companies.
meter Comparative figures regarding capital costs for privately owned
meter. properties are missing due to the fact that three statistical variables –
The municipal housing companies had a higher cost level than the interest, loans and depreciation – can no longer be measured. The
private property owners. For the municipal companies, the operating reason is that companies have increasingly moved away from separate
cost amounted to an average of SEK 422 per square meter, of which reporting of interest and loans at the property level, which is the level at
SEK 173 was the cost of administration and property management. which the measurement was previously made on within the private
Corresponding cost for the group. It has also become more difficult to obtain data regarding depreciation.

Housing cost share of disposable income

Percent
35
30
25
20
15
10
Energy costs
5 Excluding
energy costs
0
1993 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Source: Statistics Sweden, KI
The share of total housing costs in disposable income amounted to VAT was introduced on energy, management, water, sewage and
25 percent in 2012, of which 5.6 percentage points were energy waste management. Household income development was also weak.
costs. All in all, this led to household housing costs rising to 31 percent of
In the early 1990s, households experienced a large increase in disposable income in 1997.
costs due to a comprehensive tax reform at the same time as a When households were then able to increase their real incomes
sharp reduction in housing subsidies. Reduced income taxes were and interest rates fell, this upward trend was broken. Since 2007,
financed, among other things, through reduced tax deductions for household housing costs have accounted for approximately 25
interest and lower interest subsidies. The VAT on construction was percent of disposable income.
raised, as was the wealth tax. At the same time

Internationally
Housing construction
North exclusive Iceland
Number of apartments started per 1,000 inhabitants 8
Finland
2
Norway
1 Sweden
Denmark
2000 01 02 03 04 05 06 07 08 09 10 11 12
Source: Byggenaeringens Landsforening, Dansk Byggeri, Byggnadsdustrin RT Finland, Statistics Sweden and BI
In relation to the population, more homes have been built in the Even looking at the total number of apartments started during the
neighboring Nordic countries than in Sweden, and this has been the period 2000-2012, the statistics are telling. In Sweden, 324,000
case for a number of years. During the period 2010-2012, however, homes were started then. In Denmark, Finland and Norway – with
fewer or the same number of homes were built in Denmark as in just over half of Sweden's population – 279,000, 392,000 and
Sweden. 347,000 apartments were started, respectively. Population growth
In Sweden and Denmark, 2.2 apartments were started per 1,000 during the period was then in the order of 700,000 in Sweden,
inhabitants in 2012. The corresponding number was 5.3 in Finland 250,000 in Denmark, 230,000 in Finland and 515,000 in Norway.
and 6.0 in Norway.

The construction market's share of GDP - EU

2012
Percent 25
20
15
10
Slovenia Ireland Lithuania Hungary Slovakia
Greece United Kingdom Latvia Romania Malta Italy France Luxembourg Portugal Netherlands EU27 Germany Cyprus Belgium Austria Denmark Spain Czech Republic Sweden Estonia Poland Bulgaria Finland
Source: FIEC
The long-term development of investments is of great importance Otherwise, it can be noted that the crisis in the euro area has
for the development of prosperity. In 2012, construction hit the construction sectors of the EU countries hard. Ireland and
investment's share of the gross domestic product (GDP) within the Spain are two countries that only a few years ago had a
EU countries varied between 4 and 15 percent. For Sweden, the construction market share of close to 20 percent and where the
share was 12 percent, while the EU average was 9 percent. ongoing crisis has led to a sharp reduction in the construction investment sh
Unfortunately, this statistic is misleading because it also contains It is therefore remarkable in its own way that Finland is now at
estimates of repair and maintenance investments and thus does the top, as it is a country that has also been hit hard by the crisis
not comply with SNA931) (repairs and maintenance are normally in Europe. However, Finland builds a lot of housing in relation to
counted as consumption, not investment). According to SNA93, its population, and that is one of the explanations why they rank
Sweden's investment level was 9 percent of GDP and it is probably high in the international statistics.
too low a level to maintain the value and function of previous
investments.
1) System of National Accounts, 1993

VAT rates in Europe 2013-01-14

Construction activities
Renovation and
repair of private Sale
Social homes2) Plots for of new Other
Land Housing1) construction3) buildings4) construction works
Sweden 25/(ex) 25 (ex) (ex) 25

Denmark 25 25 (ex) (ex) 25
Norway 25 25 (ex) 25 25
Finland 24 24 (ex) (ex) 24
Island 25,5 25,5 25,5 25,5 25,5
Belgium 6/12 6/21 (ex) 21 6/12/21
Bulgaria 20 20 5 20 20 18 20 18
Cyprus 18 20 (ex) 20 20 19,6
Estonia 20 7/19,6 20 19,6 23 13,5
France 7//19,6 13 13,5 19,6 23 4/10 21
Greece 13 13,5 10 21 (ex) 13,5 21 3/15
Ireland 4/10 21 21 3/15 (ex)/13,5 18 21
Italy 21 3/15 18 6/21 21 4/10/21 23 6/23
Latvia (ex) 8/23 21 21 21 24 20
Lithuania 6/23 24 (ex) 20/8,5
Luxemburg 20 8,5 (ex) (ex) 4/10
Malta 10 20/5 (ex) (ex) 20/0 21
Netherlands 21 15 19 21 21 19 27
Poland 8 27 20 23 23 20
Portugal (ex)/6 (ex) (ex)
Romania 24 24
Slovakia 5 20/ex) 20
Slovenia 20 20 20/8,5
Spain 8,5 21 10/21
UK 4/10 (ex)/20 0/20 21
Czech Republic
20/0 21
Germany 15 19 (ex) (ex)

Hungary 27 20 27 27
Austria (ex) (ex)/20
1) In some countries, a lower tax rate is applied for construction services that refer to housing as part of social policy. The aim is to make housing cheaper.
2) Refers to detached houses. 3) Refers to the sale of a building plot. 4) Refers to the sale of a built-up property.
Source: VAT Rates Applied of the Member States of the European Union. (taxud.cl(2013) 69198-EN). See also www.ec.europa.eu/taxation_customs/index_en.htm
Within the EU, VAT is regulated in the EU's VAT directive, which that the tax rate is made dependent on other circumstances, for
member states must follow. It follows from the directive that each example who buys the service. The services are listed in Sven shall
country, in addition to a normal tax rate, can have a reduced tax rate in free translation from English.
for the provision of certain services and the sale of certain goods. In cases where the tax rate is stated as 0 (zero), this means that
no outgoing tax is to be reported, but that deductions can be made
Most countries in Europe have a standard tax rate of around 20 for input tax. When the tax rate is stated as [ex], it means that the
percent. Hungary currently has the highest normal tax rate, 27 percent, service is completely outside the VAT area, "exempt", which means
followed by Denmark, Iceland, Norway and Sweden with 25 percent. that output tax must not be reported and that no deduction for input
The tax rate can be adjusted within the framework of the directive's tax attributable to the service can be obtained.
rules.
The table above shows the applicable tax rate for construction For a more precise description of the services and which rules
activities in each EU country as well as for Norway and Iceland. In apply, refer to the directive and the respective country's legislation.
cases where several tax rates are specified for a type of service, this means



SNI table for the construction industry
The construction industry according to SNI 2007 The construction industry according to SNI 2002
F Construction F Construction 45
industry 41 Construction Construction 45.11
contractors 41.1 Developers Demolition of houses; ground
of construction projects 41.2 Contractors for residential work 45.12 Ground survey 45.21
buildings and other buildings 42 Construction contractors Construction of houses and other structures
45.22 Roofing work
42.11 Construction contractors for roads and highways
42.12 Construction contractors for railways and subways 45.23 Construction of highways, roads, airfields and sports facilities
42.13 Construction contractors for bridges and tunnels 42.21 45.24 Water construction 45.25 Other construction and
Construction contractors for utility projects in heating, water civil engineering works
and sewage 42.22 Public utility contractors projects in

electricity and telecommunications
45.31 Electrical installations
42.91 Vattenbyggnadsentreprenörer 42.99 45.32 Insulation work 45.33

Plumbing work 45.34 Other
Övriga anläggningsentreprenörer 43 Specialiserade
building installations
bygg- och anläggningsentreprenörer 43.11 Rivningsfirmor 43.12 Firmor för
mark- och grundarbeten 43.13 Firmor för markundersökning 43.21 45.41 Plastering, facade and plastering work 45.42
Elinstallationsfirmor 43.22 VVS-firmor 43.29 Andra bygginstallationsfirmor
Building carpentry work 45.43 Floor and wall covering
43.31 Firmor för puts-, fasad- och stuckatörsarbeten 43.32 Firmor för
work 45.44 Painting and glasswork work 45.45 Other
byggnadssnickeriarbeten 43.33 Golv- and wall coating companies 43.34
final treatment of buildings 45.50 Rental of construction
Painters and glaziers 43.39 Other companies for final treatment of buildings
and construction machinery with driver
43.91 Building sheet warehouses and other contractors for roofing work
43.99 Other specialized building and construction contractors
Definition of the civil engineering sector

SNI 2007 SNI 2002
The construction industry (SNI 41-43) Construction activities (SNI 45)

Property companies and property managers (SNI 68) Real estate operations (SNI 70)
Architectural offices and technical consulting agencies etc. (SNI 71.1) Architectural and technical consultancy etc. (SNI 74.2)
The building materials industries (Parts of SNI 16, 17, 20, 22, 23, 25, 26, 27, The building materials industries (Parts of SNI 14, 20, 21, 24, 25, 26, 28 and
31 and 33) 31)
Sveriges Byggindustrier has created a research network where projects in community building
are currently run in collaboration with colleges and universities.
The purpose of the research initiative is to obtain knowledge with high credibility as a basis for
discussions about important future issues and paths to renewal.
The goal is to change working methods and show that the construction industry is a modern
industry in progress. We want to counter the myths that exist about the industry and challenge the
established perceptions by highlighting the image of research. We want facts instead of opinions.
The reports that have been published so far can be downloaded from www.bygg.org/publikationer.
Box 5054, Storgatan 19, 102 42 Stockholm

Tel. 08-698 58 00, Fax. 08-698 59 00, info@bygg.org, www.bygg.org

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The construction industry

We operate through 25 local

Facts about the reconstruction

Sweden's Construction Industries

© S veriges B yg gindustrier 2 0 1 3 K opierag

ox 5 0 5 4 • 1 0 2 4 2 S toc kh olm Te9l 80 58 8- 60 0 • F ax 0 8 - 6 9 8 5 9 0 0 • www. b y

The inventory is elaborated by BIA analysis Cover

, A gnes N eander ( sid 5 1 )

S e p t e m b e r 2 0 1 3 . Tr y c kt i 2 5 0 0 e x . BMEDAB /A llo ffs and AB

Total construction investments per county 14 Energy and environment 46

Housing stock by age 25 Factor price index for apartment buildings 55

26 Operating and maintenance costs for apartment buildings 56

Freight transport work by traffic type 28 Internationally 58

29 Housing construction – The Nordic region excluding Iceland 59

The structure of the industry 32

Building and construction contractors – size structure 34

Sweden's Construction Industries 3

Total construction investments

SEK billion 2012 prices

Housing new construction

Source: Statistics Sweden, BI

Sweden's Construction Industries 5

Construction investment's share of GDP

Source: Statistics Sweden, BI

Source: Statistics Sweden, BI

Sweden's Construction Industries 7

SEK billion 2012 prices 80

Apartment building Small house

Source: Statistics Sweden, BI

Sweden's Construction Industries 9

10 Sweden's Construction Industries

Source: Statistics Sweden, BI

Electricity, Gas & Heating Water Transport Post & Tele

Source: Statistics Sweden, BI

Roads and streets Other facilities

Sweden's Construction Industries 13

Total construction investments

Gotland's Blekinge Jämtland's Kronobergs

The planning and building permit process

Source: Stockholm's Association of Architects (http://www.stockholmsbf.se/etthusblirtill)

The planning and building permit process (continued)

Sweden's Construction Industries 17

The appeals process

Source: Stockholm Architects Association

17. Review After

18 Sweden's Construction Industries

The Appeals Process (continued)

Source: Stockholm Architects Association

Sweden's Construction Industries 19

Source: Statistics Sweden, BI

20 Sweden's Construction Industries

New production according to form of grant

Source: Statistics Sweden

5 000 Completed by rebuilding

22 Sweden's Construction Industries

And 2009 2011 2009 2011 2009 2011

Does the ROT deduction contribute to a reduction in undeclared jobs in the

Is it possible to manage the invoice model? 75 84 15 9 10 7

Are written agreements with a so-called ROT clause used 1) 70 65 30 35 - -

Has the ROT deduction affected employment in the company?

Escaped staff- Escaped staff

Sweden's Construction Industries 23