The last three years have been full of uncertainty for many in the engineering and construction industry. However, one constant is the insatiable demand for energy and infrastructure in all forms, which is causing a fundamental shift in focus for nearly all players in the engineering and construction sector. The 'old' imperatives of commercial, residential and industrial building projects have taken second place in many geographies to energy, natural resources, transportation, communication and technology and other vital civil and social infrastructure projects.
With scale comes complexity as the global industry players navigate a tough political, commercial, regulatory and governance environment, which will test their risk management ability to the maximum extent. Margins on mega-projects can be severely impacted by unforeseen schedule delays, sometimes customer driven and sometimes self-inflicted. Although the sector has invested considerably in risk identification and mitigation, in recent years, a number of high profile project failures in the past twelve months raise question marks over the effectiveness of some of this investment.
With these issues in mind, the latest KPMG Global Construction Survey comes at an opportune moment, gauging the views of many of the senior executives of leading engineering and construction companies from around the world.