Obrascon Huarte Lain OHL SWOT Analysis, USP & Competitors

Obrascon Huarte Lain (OHL)

Parent Company

OHL Group

Category

Construction Services

Sector

Real Estate and Construction

Tagline/ Slogan

Creating value under sustainable conditions

USP

100 years of experience and significant operations in 30 countries across all five continents

Obrascon Huarte Lain OHL STP

Segment

Construction services and real estate

Target Group

Asia Pacific, Spain, Europe, Latin America, Mexico, MENA Area and North America

Transportation infrastructure, building construction and construction of industrial plant

Positioning

Positioned as a company that maintains a strong commitment to the principle of prudence

Obrascon Huarte Lain OHL SWOT Analysis

Strengths

1.  World leader in hospital and railway construction – gives it a competitive advantage while striking deals across the globe

2. Strong appetite for growth – merger between Obrascon and Huarte in January 1998; Lain joins the league in May 1999 to form OHL, as it is known today. Indicates a strong appetite for growth and inorganic expansion

3. Fourth largest contractor in Latin America – has a thriving business in that part of the world which it can leverage upon

4. The parent company OHL group has operations in 5 divisions – concessions, construction, industrial , development and services; the 5 businesses together cover over 30 countries of the world in operations

5. Over 22,000+ people are employed with the organization worldwide

Weaknesses

1. Diminishing order backlog – though the company had a good sales turnover  the order backlog over the years has been diminishing due to excess competition and current economic conditions

2. Too much concentration geography-wise on Spain – though the company has presence in over 30 countries, majority of its revenues come out of Spain and hence has a risk of losing profits/business when Spanish economy is not doing well.

Opportunities

1.  Expansion in Czech market through stake in Brno building group – the company recently struck a deal to buy shareholding in Brno building group

2. Positive outlook of the Spanish construction and engineering industry - the Spanish construction and engineering industry is forecast to grow considerably

3. More global business through partnerships and acquisitions

Threats

1. Sluggish US and European construction markets - According to the US Census Bureau, total construction spending was slow. Declining construction spending in these regions will adversely affect the company’s revenues

2. Increase in operating expenses - There are increasing demands to use non-hazardous substances in construction and cement manufacturing including non-lead based paints, recyclable plastics and metals treated with non-carcinogenic chemicals.

3. Improved performance of domestic as well as global competitors

Obrascon Huarte Lain OHL Competition

Competitors

1. ACS

2. Ferrovial

3. FCC