KPMG - Familiar challenges new solutions

The 2023 Global Construction Survey provides valuable insights into the current state of the engineering and construction industry, highlighting both the exciting opportunities and the challenges it faces. The report emphasizes the importance of resilience in the face of disruptive events such as supply chain disruption, cost escalation, resource constraints, deglobalization, and COVID-19. Implementing or updating models for remote working and job site travel can make construction projects more resilient. Building a more diverse workforce is crucial for making breakthroughs in the industry. Having the right people is essential for overcoming challenges and driving success. The report highlights several attributes that influence an organization's success or failure in dealing with disruptive events. These include effective risk management processes, resilience planning, maturity of business continuity programs, industry focus, regions of operations, size and scale, focus on innovation, adoption of technology, workplace demographics, company leadership, and ownership. The renewable energy revolution presents excellent prospects for the engineering and construction industry. Government infrastructure stimuli and the shift towards renewable energy contribute to an optimistic mood in the sector. However, the industry also faces challenges and risks, including supply chain disruption, inflation, labor shortages, and the potential impact of a recession. Poor project performance and major project failures are perennial challenges that need to be addressed. ESG factors play a significant role in the construction sector. Companies need to consider the opportunities and risks associated with ESG considerations, such as sustainability, social impact, and governance practices. Overall, the report provides a comprehensive overview of the current state of the engineering and construction industry, highlighting the opportunities and challenges it faces and the strategies companies can adopt to succeed in this ever-evolving landscape.