A majority of the engineering and construction (E&C) industry remains cautiously optimistic despite widespread economic and geopolitical uncertainty, according to KPMG’s 2023 Global Construction Survey.
The new report includes industry perspectives from more than 250 E&C professionals globally, as well as project managers from a variety of industries. The study analyzes the growth potential and challenges facing the E&C industry, the rising influence of environmental, social, governance (ESG) initiatives and the role of new, innovative technology in the construction landscape.
“With more and more employees looking for companies that prioritize DEI and employee health and wellbeing, amongst other factors, companies will need to offer fulfilling careers with flexible working conditions, greater work-life balance and varied career paths alongside cutting edge innovation in purposeful, sustainable organizations in order to succeed in an ever-changing, competitive industry,” said Geno Armstrong, International Sector Leader – Engineering & Construction, KPMG International.
As the global E&C industry continues to face a volatile environment, with sustained supply chain disruption, rising inflation of energy, materials and wages, labor shortages and a possible recession, 66% of respondents are optimistic about the direction of the construction industry. The industry is poised for outsized growth due to infrastructure demand, government stimulus, energy transition and new post-covid customer demands.
Despite the confidence expressed by respondents, the industry still needs to solve the productivity and performance issues that have plagued the industry for decades and continues to face a number of challenges, in the form of continued supply chain disruption, high energy and materials prices, and labor shortages that are further pushing up costs and holding up projects.
In our very first Global Construction survey in 2008, respondents revealed that the number one driver for sustainability amongst E&C companies was to position themselves as “environmentally aware”. This year’s report notes that ESG has become a more important and integrated part of leaders’ thinking.
The construction industry is starting to embrace the power of technology to transform performance. The adoption of innovative technologies such as robotic process automation (RPA), virtual reality (VR), project management information systems (PMIS), drones, smart sensors and artificial intelligence (AI) has increased significantly. When it comes to improving ROI on capability projects, PMIS, building information modeling (BIM) and advanced data analytics are considered to have the greatest potential; digital twins, modular/offsite manufacturing, AI, and BIM are driving the greatest gains in project performance.
For more insight, check out the full 2023 Global Construction Survey.
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