Business environment
YIT's geographic and business structure balance the impact of economic fluctuations on the Group's revenue and profits; changes in the economy do not affect all of YIT’s business areas or operations simultaneously.
One of the most stable regions in the world in terms of politics and economy - the Nordic countries - accounts for 85 per cent of YIT's revenue. The stability of the Nordic operations make it possible to expand operations in the rapidly growing Russian residential construction market.
Economic and political environment
- Economic growth in the Nordic countries, excluding Denmark, continues to outpace the EU average.
- In Russia, the economic growth outpaces the Nordic countries, and the country is benefiting from the high oil prices.
- In the Baltic countries, economic growth estimates have been downgraded considerably, but growth continues to outpace the Nordic countries.
Service demand
- High energy prices and regulations enforced due to climate change will increasingly lead to pursuit of energy efficiency.
- Consumer behaviour is undergoing change. Purchasing services will become more commonplace, and people want to express their individuality through housing, for instance.
- Public institutions are attempting to streamline their operations by opening the production of services to competition.
Resources
- Competition for skilful labour is getting significantly tougher.
- Procurement and efficient planning and project management are used in seeking added value and cost benefits.
- Uncertainty has increased in the capital markets.
Competitive situation
- YIT has a strong market position in fragmented markets.
- Competition is local.
- Prices are rather high in the acquisition market.
Updated February 29, 2008
InvestorRelations@yit.fi
