The construction sector around the world is likely to pick up in 2010 in tandem with the recovering global economy.
Accoring to KPMG’s 2009 Global Construction Survey, 64 per cent of respondents expect to either increase or maintain profits by next year.
The survey sought the view of top management of more than 100 of the world’s leading engineering and construction companies.
The outlook for the construction industry is optimistic despite falling demand and shortage of funding experienced in the wake of the financial crisis.
Construction companies surveyed said they view the financial crisis as an opportunity to get leaner, so that when recovery finally occurs, they will be prepared to succeed.
Meanwhile, 53 per cent of global survey respondents state that their backlog volume of jobs has either gone up or stayed the same in the past year.
The survey also said that government stimulus packages will further help the industry.
Of those surveyed, 82 per cent of contractors in Asia Pacific expect at least a moderate or significant increase in opportunities over the next two years.
Another indicator of the industry’s optimism is its ability to retain its workforce despite the economic crisis.
Some 35 per cent of global respondents have not reduced their workforce at all, and 28 per cent have taken no action with regards to their workforce numbers.
When it comes to competing in a tougher marketplace, the majority of respondents said that a focus on sustainability is a “must-have” to satisfy clients and regulators.
56 per cent of respondents say that sustainability helps position their companies as being innovative and environmentally aware.
Source: Channel News Asia, 28 Dec 2009