Abstracts – Browse Results
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Almås, A-J and Hygen, H O (2012) Impacts of sea level rise towards 2100 on buildings in Norway. Building Research & Information, 40(03), 245-59.
Brahmi, B F, Sassi Boudemagh, S, Kitouni, I and Kamari, A (2022) IPD and BIM-focussed methodology in renovation of heritage buildings. Construction Management and Economics, 40(03), 186–206.
Chang, Y, Wilkinson, S, Seville, E and Potangaroa, R (2012) Changes in resource need for post-disaster reconstruction: a longitudinal study in China. Building Research & Information, 40(03), 327-36.
Ford, B, Wilson, R, Gillott, M, Ibraheem, O, Salmeron, J and Sanchez, F J (2012) Passive downdraught evaporative cooling: performance in a prototype house. Building Research & Information, 40(03), 290-304.
Glad, W (2012) Housing renovation and energy systems: the need for social learning. Building Research & Information, 40(03), 274-89.
Gruneberg, S and Fraser, B (2012) Construction purchasing power parities: potential roles and limitations. Building Research & Information, 40(03), 348-56.
Healy, D P (2012) Influence of the carbon intensity of electricity on carbon savings from CHP. Building Research & Information, 40(03), 317-26.
Hu, M, Nippala, E, Kallioharju, K and Pelsmakers, S (2022) Monte Carlo simulation approach to understand the cost variance for energy retrofit projects: comparative study of Finland and the United States. Construction Management and Economics, 40(03), 207–22.
Jewell, C and Flanagan, R (2012) Measuring construction professional services exports: a case for change. Building Research & Information, 40(03), 337-47.
Jowkar, M, Temeljotov-Salaj, A, Lindkvist, C M and Støre-Valen, M (2022) Sustainable building renovation in residential buildings: barriers and potential motivations in Norwegian culture. Construction Management and Economics, 40(03), 161–72.
Le, A T H, Domingo, N, Rasheed, E and Park, K (2022) Strategic collaboration in managing existing buildings in New Zealand's state schools: school managers' perspectives. Construction Management and Economics, 40(03), 173–85.
Parkinson, A T, Friedman, K S, Hacking, T, Cooke, A J and Guthrie, P M (2012) Exploring scenarios for the future of energy management in UK property. Building Research & Information, 40(03), 373-88.
Rajala, P, Ylä-Kujala, A, Sinkkonen, T and Kärri, T (2022) Profitability in construction: how does building renovation business fare compared to new building business. Construction Management and Economics, 40(03), 223–37.
- Type: Journal Article
- Keywords: Profitability; building renovation business; new building business; construction industry; solvency;
- ISBN/ISSN: 0144-6193
- URL: https://doi.org/10.1080/01446193.2022.2032228
- Abstract:
In recent decades, energy-efficiency improvements and ageing dwelling stocks have grown the renovation need in many countries. This research compares the profitability of building renovation companies and companies specializing in new construction using financial statement analysis and analysis of variance. Profitability is assessed through EBITDA and return on assets (ROA). Debt to equity (D/E) ratio as a solvency measure supports the analysis. The findings show micro and small companies in the new building sector have a statistically significant advantage in EBITDA over renovation in same size groups; projects in the renovation sector appear to be more complex, especially in terms of design, causing cost overruns. The more cyclical nature of new construction, however, equalizes EBITDA differences over time. Medium-size companies overall had the lowest EBITDA following the 2008–2009 financial crisis. ROA was generally higher for the renovation sector highlighting the more capital-intensive nature of new construction; unsold apartments and land for future projects hold capital, which results in higher D/E ratios. D/E ratios also revealed that both sectors have faced the COVID-19 pandemic less indebted compared to the 2008–2009 financial crisis. Since both sectors’ profitability has been decreasing during the research period (2005–2019), actions are needed especially in the renovation sector, which has an increasingly important role in developed societies.
Raslan, R and Davies, M (2012) Legislating building energy performance: putting EU policy into practice. Building Research & Information, 40(03), 305-16.
Sunikka-Blank, M and Galvin, R (2012) Introducing the prebound effect: the gap between performance and actual energy consumption. Building Research & Information, 40(03), 260-73.