2023GlobalConstructionSurveyFamiliarchallenges—newapproachesForewordThe2023GlobalConstructionSurveyfindstheindustryinacautiouslyoptimisticmood,asthecombinationofwidespreadgovernmentinfrastructurestimuli,therenewableenergyrevolution,increasingcapitalinvestmentinstrategicallyimportantsectors,andapost-COVID-19pipelinecreateexcellentopportunitiesforengineeringandconstruction(E&C)companies.Atthesametime,theindustryfacesacontinuingvolatileenvironment,withcontinuedsupplychaindisruption,risinginflationofenergy,materialsandwages,laborshortagesandapossiblerecession,whichcouldhaveamajorimpactoncertainsubsectors.Meanwhile,theperennialchallengesofpoorprojectperformance,lowproductivity,andcostlymajorprojectfailures—andhigh-profileindustrybankruptcies—continuetodogthesector.Environmental,Social,andGovernance(ESG)presentsbothopportunitiesandrisks.Onthepositiveside,theshifttoalow-carbon,biodiverse,circularworldcandriveinfrastructureandconstructionspendandbringcompetitiveadvantage,improvedROIforforward-thinking,diverse,andpurposefulbusinesses,whoshouldbetopofthequeueforbothcapitalandnewtalent.However,ESGalsobringsrisingscrutinyandcompliancerequirements,aswellaspressuretoreduceembodiedandoperationalcarbonfootprint,wasteandpollution—atpace—thatcouldbecostlyandpresentssignificantandmulti-dimensionalobstacles.Thetechnologydilemmapersists,asbothprojectownersand,particularly,E&Ccompaniesponderwheretoinvestandhowtofindthesubstantialsumsneededtobecomedigitalleaders.Someofthekeybreakthroughs—likemodular/offsitemanufacturing—arestillrelativelylow-techand,ifnotwidespread,aredefinitelygainingmomentum.Accordingtooursurveyrespondents,theproportionofprojectsusing50percentormoremodular/offsitemanufacturingissettorisefrom14percentto28percentinthenextfiveyears(seeExhibit19).Andtheloomingspecterofbigtechcastsaperpetualshadowoveranindustryripefordisruption,astraditionalplayersfacethethreatofconvergence,andlosingmarketsharetomoredigital-savvyinterlopers.ThisisKPMG’s14thGlobalConstructionSurvey,andthebiggesttodate,containingtheinsightsofnearly300E&Cfirmsfromaroundtheglobe.Thankyoutoallthosewhotookthetimetoparticipateintheongoingdebateabouthowtoadvanceanindustrythatplaysahugepartinallourlivesandcanbeanincredibleforceforgood.GenoArmstrongGlobalLeadandPrincipal,Infrastructure,CapitalProjects,andClimateAdvisoryKPMGintheUSClayGilgeNationalLeadandPrincipal,Infrastructure,CapitalProjects,andClimateAdvisoryKPMGintheUSKevinMaxPrincipal,Infrastructure,CapitalProjects,andClimateAdvisoryKPMGintheUSSuneelVoraPartner,BusinessConsulting–CapitalProjectsandIndustry4.0KPMGinIndia2ContentsViewfromtheindustry:ReducingwildfireriskinCaliforniaSurveyataglanceProfitable,sustainablegrowth–orboomandbust?Viewfromtheindustry:DrivingcontinuousimprovementTherisinginfluenceofESGViewfromtheindustry:AttheforefrontofsustainableconstructionThegreatinnovationraceKeytakeawaysAboutthesurveyTheKPMGGlobalEngineering&ConstructionpracticeViewfromtheindustry:EmbracingmodularizationanddigitaltechnologiesViewfromtheindustry:BuildingsupplychainresilienceKPMGInternationalentitiesprovidenoservicestoclients.Allrightsreserved.©2023CopyrightownedbyoneormoreoftheKPMGInternationalentities.0605040302301•Two-thirds(66percent)ofrespondentsareoptimisticaboutthedirectionoftheconstructionmarket,and78percentfeelinfrastructurestimuliwillhaveapositiveimpact....