2023-03-17-德勤-2023年工程建设行业展望_12页_1mb

2023 engineering and construction industry outlook summary

2023 is expected to see continued growth in the engineering and construction (E&C) industry, driven by factors such as economic spending and government funding, but significant challenges will persist, including inflation, supply chain disruptions, volatile material costs, labor shortages, and talent management issues. Different industry segments experience varied growth trajectories, with residential construction likely facing sluggish demand due to weakening consumer spending and high interest rates, while nonresidential sectors benefit from initiatives like the Infrastructure Investment and Jobs Act (IIJA). The industry must navigate increased project costs, margin pressures from supply chain volatility, and workforce-related hurdles. Emerging technologies, such as AI, BIM, and prefabrication, are being adopted to enhance efficiency, while ESG and sustainability are becoming critical focus areas, influenced by regulatory requirements and stakeholder demands. Preparedness through strategic investment in digital tools, supply chain management, and leveraging government funds will be crucial for resilience in 2023.

Key points:

• Market dynamics: Growth is differential; residential segments are pessimistic due to economic factors, while nonresidential is supported by government funding. Inflation and interest rates contribute to project delays and cost increases.
• Supply chain: Lead times and material costs are volatile, affecting margins; new business models and ecosystem approaches are emerging to address these issues.
• Future of work: Skilled labor shortages and an aging workforce drive the need for flexible workforce strategies, DEI initiatives, and technology integration to attract and retain talent.
• Emerging technologies: Investments in AI, BIM, and digital tools aim to improve project efficiency and innovation, with risks mitigated through structured approaches.
• ESG and sustainability: Increasing focus on reducing carbon footprints, using sustainable materials, and meeting regulatory demands, such as climate-related disclosures.
• Preparedness: Companies should prioritize cost savings, talent retention, supply chain resilience, and technology adoption to navigate volatility and capitalize on opportunities.