Agglomeration and Competitive Position of Contractors in the International Construction Sector

Abstract

The international construction sector is an important contributor to international economic cooperation, and recent decades have witnessed the dramatic development of the Engineering News Record (ENR)’s top 250 or 225 international contractors (TICS250) in the global market. World agglomeration and competitive positioning has a significant influence on engineering companies’ selection and development of their international markets. Based on the location quotient index and the Boston Portfolio Matrix, an agglomeration level and competitive positioning model is presented for international engineering contractors. Assessment methods are introduced to quantitatively analyze the competitive statements of international contractors collected from the ENR, the main focus being on the difference in agglomeration levels between 13 contractors from 2009-2013. The competitive positions and diversified changes of contractor clusters in 9 different industries from 13 countries are also analyzed to highlight the differences in their agglomeration levels and competitive position. The study establishes referential methods for contractors to understand their development patterns and competitive statements in the global market and is of a significant importance for developing relevant strategies.