KPMG International’s Global Construction Survey 2013 catches the industry in a more upbeat mood after several years of falling backlogs and tight margins, that felt like a hangover following the previous boom. Economic recovery is stimulating manufacturing, while growing urbanization is driving a continued demand for infrastructure in all forms. Power and energy are essential forces behind such expansion, accelerating the need to extract and transport conventional and unconventional coal and gas, and build new installations for generating traditional and sustainable energy.
“Canadian respondents see stability, leading to cautious optimism. The survey results suggest that growth is going to be slow but there are a number of factors that will support steady activity, including demand for new infrastructure projects in the mining and energy sectors, government funding for public transit, and population growth. In the next few years, companies will be tested on their ability to diversify, manage labor cost escalation, and deploy human talent in remote areas.”
– Augusto Patmore, Partner, Advisory Global Infrastructure Advisory & Mining, KPMG in Canada
“A key theme we are seeing, particularly in Canada, is the focus on ethical practices and enhanced standards particularly over bid and tendering processes. Canadian respondents believe that effective risk management is critical to future growth. As the sector looks forward, there will greater accountability for effective processes and control over construction practices.”
– Lorne Burns, Partner and National industry Leader, Real Estate, KPMG in Canada
Canadian respondents expect their company’s revenue to grow up to 15 percent in 2013, based on 2012 revenue. The majority of Canadian respondents believe that an industry organic growth could be on the horizon, even as early as within the next two years. However, effective risk management is critical to future growth.