Construction industry faces risk pressure
International Construction Magazine reports.
Richard Threlfall, UK head of KPMG's infrastructure, building and construction practice, says: "While the continuing economic instability deepens in many parts of the globe, the construction industry is not in retreat. 2011 was a solid year for engineering and construction companies as they saw backlog orders increase compared to 2010.”
Market Watch says creating efficiencies to mitigate risk, manage project complexity and meet the anticipated increase in demand is one of the biggest challenges the sector faces, according to KPMG.
The consulting firm says companies are seeking solutions to address efficiencies in their procurement and supply chains.
Nearly 60% of respondents globally say improvement in this area will improve profits and enhance cash flows. Almost 40% of respondents say the primary cause of inefficiencies in their supply chains were disparate processes and systems.
In Audit states the KPMG survey reveals that nearly 60% of respondents from the Americas believe the energy sector will have the biggest impact on revenues, followed by retail projects.
Respondents from Asia Pacific and Europe, Middle East and Africa (EMEA) also see energy as their biggest revenue producers. In Asia, respondents see the second-biggest revenue opportunity in the industrial sector, while in EMEA, roads and bridges ranked second.
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