Energy projects will offer the most attractive investment opportunities and could change the direction of the construction industry in 2012, according to KPMG.
KPMG’s sixth Gobal Construction Survey found that 41% of global engineering and construction experts expected energy projects to offer the most attractive investment opportunities this year. This was followed by transport projects at 30%.
Economic uncertainty was seen as the greatest threat to construction but despite this 49% said they expected to increase their backlog orders over the next 12 months.
In the Americas and Europe, Middle East and Africa (EMEA) regions, 80% surveyed said they were concerned about the government’s ability to drive infrastructure spending and see lack of leadership as a barrier to investment.
“This year could see the construction industry in the UK and around the globe start to change direction significantly as the energy sector grows as a source of income for the industry,” said KPMG UK head of infrastructure, building & construction practice, Richard Threlfall. “As a result, the demand for firms and individuals with energy sector-specific engineering and construction skills will rise as power projects proliferate.”
- Engineering and construction leaders expect office (29%); industrial (27%); retail (23%) to have a negative impact on construction
- 21% of global engineering and construction leaders have not made significant cost reductions; in Europe the Middle East and Africa (EMEA) 29%. Some 61% said that organisational culture is the biggest barrier to greater cost efficiency
- 50% of global engineering and construction leaders say IT transformation is too costly and takes too long
- 59% of respondents say procurement and supply chain offers the greatest opportunity to improve efficiency
- One-fifth of global respondents saw supply-chain management as a key business risk but over half of UK respondents identified this as one of the greatest risks facing their firms
- A quarter of EMEA engineering and construction leaders are concerned about the skills shortages in their region; in Asia Pacific countries the figures rises to 45%
- EMEA respondents say the two most central risk factors when doing business with emerging (high growth) markets are access to skilled resources (41%) and political risks (38%).