Construction industry optimistic about the future

04 - 11 - 2013

There is significant optimism in the construction industry with regards to future growth, according to a recent research.

A substantial number of construction companies have reported increased order books and profit margins, the recent Global Construction Survey 2013: Ready for the Next Big Wave has revealed.
The survey polled the opinions of 165 senior executives of leading engineering and construction companies from around the world to determine the state of the industry and opportunities for growth.
Sixty-six per cent of those surveyed feel that national governments’ infrastructure plans are the single biggest driver of market growth.
The survey showed a general upward trend in backlogs and margins between 2010 and 2013. Fifty-four per cent of respondents reported a backlog increase of at least 5 per cent for 2012-2013.
Eight per cent of construction firms expect stable or higher margins for 2012-13, a significant improvement over the prior period.
Two-thirds of those surveyed expect their company’s revenue to grow by up to 25 per cent in 2013.
All of those surveyed said they were considering looking into the power and energy sectors. Eighty-three per cent said they were considering targeting rail, 33 per cent industrial and 17 per cent water.
A number of respondents highlighted the importance of investing in people to ensure that workers have sufficient skills and sector knowledge as companies move into unfamiliar areas.
A respondent from the UK commented that his company’s priority is: ‘Recruitment of key personnel with industry experience of the rail and energy sectors.’

‘The worst is over’
Richard Threlfall, UK Head of Infrastructure, Building and Construction at KPMG, said: ‘There has been a growing sense in the last couple of months that the worst is over and the results of our survey provide further evidence that construction activity is finally picking up.
‘Construction companies now need to invest in growth. What is holding back the industry now is not lack of demand, but the ability of businesses to resource for it and recruit sufficient experienced staff.
‘The next round in this highly competitive market will be won by those who have the resources to compete. Companies need to act now, because the industry’s resurgence is already underway.’








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Foremans LLP