New survey reveals two biggest issues for global construction industry
By Andy Brown16 June 2023
Inflation and delays and disturbances in the supply chain are the biggest problems facing the construction industry, according to a new survey by InEight.
The company’s third annual Global Capital Projects Outlook draws insights from research conducted with 300 of the world’s largest capital project owners and contractor construction professionals across North America, Europe and Asia-Pacific. It showed that nearly three quarters of respondents (74%) report disruption caused by cost inflation, while 70% cite delays and disturbances in the supply chain.
Despite a difficult operating environment, more projects are being completed on, or ahead of schedule, (47%) this year compared to 2022 (40%). Regarding cost control, 45% reported staying on or below budget, compared with 42% last year.
Companies in construction are using technology and data to improve their effectiveness. Half of respondents say that having connected data improves risk management, while a third say it reduces cost overruns (38%), leads to fewer scope changes (37%) and schedule overruns (33%). It also has a markedly positive impact on employee productivity according to 46% of respondents.
Despite challenges, optimism has remained high for a third year in a row (92% in 2021, 96% in 2022 and 94% in 2023) with digital technologies and sustainable building projects identified as key areas of growth.
“It has been a challenging couple of years for construction, with most organizations facing significant supply chain and labor challenges which have impacted everything from cost to workmanship,” said, Jake Macholtz, CEO, InEight.
“However, those organizations that have remained committed to achieving technology sophistication are reaping the benefits, both for themselves and their clients. The Outlook sets out a strong case for all construction organizations to follow in these footsteps, highlighting the many benefits for risk management and communication to project certainty, to name a few.”