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      The construction industry is one of the main pillars of the economy, both nationally and internationally. It creates essential foundations for social development, including housing, mobility networks, energy infrastructure and public facilities. The ongoing demand for modern and sustainable infrastructure is increasingly placing the industry in a complex area of conflict.

      In addition to the noticeable shortage of skilled workers, construction companies are under high margin and time pressure. At the same time, requirements are increasing due to regulatory requirements, geopolitical uncertainties and the need to combat climate change with resource-efficient construction. Support programmes such as the German government's special fund for infrastructure and climate protection projects, as well as legal measures to accelerate housing construction, show that the public sector is holding the industry accountable.

      More efficient project management through digitalisation and AI 

      Forward-looking companies are increasingly relying on digital technologies and innovative methods to make planning and implementation more efficient. Building Information Modelling (BIM), drones and AI-supported project management are no longer just visions, but part of everyday practice. At the same time, sustainability is becoming increasingly important – from the selection of environmentally friendly materials to CO₂ reduction throughout the entire life cycle of a building.

      Industries involved

      The construction industry finds itself caught between a rock and a hard place, facing rising demand for modern infrastructure, a growing shortage of skilled workers, pressure on margins and time, geopolitical uncertainties and the need for sustainable transformation.

      Dr. Steffen Wagner
      Dr. Steffen Wagner

      Partner, Deal Advisory, Head of Corporate Finance, Head of Transport & Infrastructure

      KPMG AG Wirtschaftsprüfungsgesellschaft

      Our range of services

      KPMG supports companies in the construction industry with in-depth technical and industry knowledge in meeting the key requirements of this important sector. Companies benefit from our interdisciplinary collaboration, which enables us to offer our clients individually tailored audit and advisory services.

      • Comprehensive tax advisory services 
      • Annual financial statement audits 
      • Digital transformation through the design, selection and implementation of BI tools, data warehouse solutions and automated reporting, as well as the preparation and implementation of SAP S/4HANA projects for optimised business processes
      • Optimisation and digitalisation of commercial processes 
      • Advice on structuring and procuring financing
      • Sustainability consulting and assessments 
      • Tailor-made solutions for all valuation occasions, combined with comprehensive product and detailed industry knowledge 
      • Support for the development of the data and platform economy
      • Support for innovation management and process optimisation, for example through robot process automation in back-office functions and AI-based applications and potential analyses
      • Review and redesign of administrative structures 
      • Support with company acquisitions and sales Certification and project-related auditing of IT projects 
      • Design and implementation of business intelligence and analytics solutions 
      • Decarbonisation in new and existing buildings

      Shaping transformation in the construction industry and infrastructure

      The construction industry is under great pressure to change. Increasing demands on infrastructure, decarbonisation, digital processes and resilient supply chains are coming up against challenging project timescales and cost targets. It is therefore crucial for management teams in the construction industry to bring together investments, risks and operational performance at an early stage.

      The construction industry encompasses the strategic management of construction projects, infrastructure projects and real estate projects throughout their life cycle: from planning and financing to procurement, realisation and operation through to the transformation of existing business models. In the transport and infrastructure sector in particular, there is an increasing focus on maintaining existing networks. The Federal Ministry of Digital and Transport clearly describes the focus for federal trunk roads as maintaining and improving the quality of existing networks, particularly with regard to ageing infrastructure and bridge modernisation.

      Rethinking the construction industry: resilient, digital, capable of investment

      The need for action in the construction industry is concrete. Infrastructure must remain efficient, construction programmes must be financeable and construction projects must remain controllable even under volatile conditions. At the same time, the digitalisation of the construction industry is changing the data basis for decisions. In building construction, for example, the further development of construction activity statistics is intended to record construction starts, construction completions and administrative data more digitally; digital transmission channels and administrative data are to become the new standard.

      For companies in the construction industry, this means that decisions will become more data-based, transparent and verifiable. Anyone managing construction projects, infrastructure portfolios or operational units needs reliable key figures on costs, risks, deadlines, sustainability and capacities. We support you in establishing this control logic and linking it to your corporate strategy.

      Building Performance – from strategy to delivery

      Transformation in the construction industry does not just start on the construction site. It begins in the operating model, in governance structures, in the data architecture and in the question of how investments are prioritised. Large construction and infrastructure projects in particular show that schedule and cost certainty cannot be achieved through technical planning alone. The decisive factor is the interplay of clear responsibilities, transparent risk management and digitally supported project control.

      We support management teams in the construction industry in strategically aligning investment programmes, evaluating construction and infrastructure portfolios and improving decision-making processes. Our view combines market understanding, regulatory requirements, financing issues and operational implementation. This creates a reliable picture of which construction projects create value, which risks need to be addressed early on and which structures are necessary for scalable implementation.

      Digitalisation of the construction industry as a management task

      Digitalisation of the construction industry is not just an IT project. Digital models, automated evaluations, networked project platforms and building information modelling only unfold their benefits when processes, data responsibility and control logic fit together. In practice, it is often the case that data is available, but not prepared in a way that is conducive to decision-making.

      We support companies in the construction industry in developing digital target images, evaluating existing system landscapes and implementing data-based control models. This also includes defining relevant interfaces between planning, purchasing, construction execution, controlling, ESG reporting and operations. This provides management with a better basis for managing budgets, subsequent costs, project progress and risks in construction projects with foresight.

      Construction industry transformation: combining performance, ESG and regulation

      The transformation of the construction industry is also characterised by sustainability requirements. Materials, energy consumption, the circular economy and emissions are increasingly influencing project decisions, financing and reporting. For companies in the construction, infrastructure and transport sectors, this creates a double challenge: they must fulfil regulatory requirements and at the same time develop economically viable solutions.

      We advise you on how to combine ESG goals, investment planning and operational performance. This includes target images for sustainable infrastructure, profitability analyses, risk assessments, governance models and the integration of relevant key figures in management reports. Our aim is not to view sustainability in isolation, but as a component of robust corporate and project management in the construction industry.

      How we support you

      We help companies in the construction industry, the construction sector and the infrastructure environment with strategic, financial and operational issues. These include transformation roadmaps, performance programmes, digital management models, risk and governance analyses as well as support for complex construction projects, investment programmes and infrastructure projects.

      We bring together experts from Transport & Infrastructure, Strategy, Technology, Deal Advisory, Tax and ESG. You don't get an isolated, individual view, but a reliable perspective on the big picture: What needs to be managed? Which investments are viable? Which digital skills are missing in the construction industry? And how can transformation be organised so that it has an impact in construction projects and day-to-day business?

      Ready to talk? Contact us

      Special assets: infrastructure needs extra focus

      The German government is making 500 billion euros available by 2045. This leads to investment opportunities.

      Learn more
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      KPMG Insights on the construction industry

      Your contact

      Dr. Steffen Wagner
      Dr. Steffen Wagner

      Partner, Deal Advisory, Head of Corporate Finance, Head of Transport & Infrastructure

      KPMG AG Wirtschaftsprüfungsgesellschaft

      Frequently asked questions

      The construction industry is facing increasing demands in terms of infrastructure, digitalisation, sustainability and project management. It is becoming crucial for management teams in the construction industry to better combine investments, risks and operational performance.

      Digitalisation creates a better basis for the planning, management and control of construction and infrastructure projects. However, it is crucial that data, processes and responsibilities in the construction industry are clearly interlinked.

      KPMG supports companies in the construction industry with strategy, transformation, performance improvement, digital management, ESG integration and governance. The focus is on a robust decision-making basis for management and company leadership.

      Infrastructure projects and major construction projects are often capital-intensive, long-term and risky. This is precisely why they require clear governance, reliable financing, transparent project management and early risk management.