Demand for future-ready construction firms grow - Survey | Sunday Observer

Demand for future-ready construction firms grow - Survey

26 May, 2019

KPMG Future-Ready Index reveals that only 20 percent of the surveyed are prepared to meet the needs of a changing industry -

Construction and engineering firms are building the world of tomorrow, yet, only a small number of firms have the ability to lead the industry, according to a KPMG survey released recently.

The market demand for firms with expertise to build climate-aware, data-driven smart cities is growing and firms are demonstrating leadership miles from the job site. They are rationalising governance, investing in technology, building culture, hiring diverse skillsets, and tracking results across all aspects of the business. The KPMG Future-Ready Index reveals that of the executives surveyed, only 20 percent are prioritising and benefiting from these back-office competencies.

“In the two short years since we last surveyed the market, we’ve seen a jump in attitudes of construction executives toward the implementation and use of technology in their businesses,” said Partner, KPMG in the US, Global Leader of Engineering and Construction, KPMG International, Geno Armstrong.

“In 2017, few organisations were making technology investments, and even fewer were reaping those benefits. We are now hearing from leaders who declare themselves to be technology companies building construction projects. The stark contrast highlights the widening gulf between the leaders in the industry and everyone else,” said Armstrong.

The survey interviewed 223 global construction and engineering executives, scoring responses under three pillars to determine a benchmark of the industry. The benchmark index comprises Innovative Leaders (20 percent), Followers (60 percent) and those organisations considered to be Behind the Curve (20 percent).

The research reveals an imbalance in the industry, with those in the bottom 20 percent facing a critical challenge to adapt quickly, lest they face consolidation or takeover bids. Additional key findings from the Future-Ready Index include:

Invest time and effort to strengthen governance and controls: 66 percent of leader organisations who have done so finish projects on time while 0 percent of those behind the curve do the same.

Leaders are far more likely to deploy pilot programs on new technologies, to have organisation-wide labs to test new innovations, and to actively recruit new talent with specific technology skills.

Future-ready organisations rate attracting talent as the second most important challenge for the entire industry – all other respondents rank talent in fifth place

Diversity doesn’t stop at hiring: the majority of the bottom 80 percent believe a diverse workforce is important, but only the top 20 percent prioritise the tracking of diversity at all levels of the business

For those in the bottom 20 percent, the majority of effort is spent on short-term revenue growth and there is little to no investment in technology “Those in the middle can begin to make real strides toward leadership in the industry by putting in place a strategic road map,” Armstrong said. 

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