Global Construction Outlook 2023
Improving outcomes/
summing up
Whilst we expect another uncertain year for the global construction industry, we have also seen its resilience with projects continuing to be built during the challenging circumstances of recent times.
To navigate the changing environment, it is important to understand the local landscape. The rise of digitalisation will help the industry to overcome threats related to the climate crisis, project viability and low productivity.
Undertaking regular cost checks and practising value management
Due to market volatility, it is vital to check budgets regularly to ensure they reflect the latest situation. Particularly crucial at the moment, value management remains important to make the best use of available resources and reflect market advancements, such as technology or end-user requirements.
Understanding the local market and project risk profile
Over six in ten of our experts said that the supply chain in their local market has become more selective in tender opportunities in 2022. Derisking the project can make it more attractive for pricing, but to avoid the addition of premiums it is vital to ensure that risk allocation is appropriate and fair.
Issues with materials availability and longer lead-in times mean it is important to engage early with the supply chain and consider advanced ordering to secure resources and improve programme certainty.
Utilising digital tools and data to enhance decision-making
The McKinsey Global Institute’s ‘Reinventing construction: A route to higher productivity report’, 2017, found that global labour-productivity growth in construction has averaged only 1% a year for the past two decades, compared with 2.8% growth for the total world economy and 3.6% in manufacturing.
Digitalisation and the increased use of data are key to improving outcomes. From generative design to minimise wastage, robotics to improve efficiency and safety on site, to data analytics to improve decision-making and learning from previous projects — there are tremendous opportunities which are now gathering pace.
Summing up
The construction industry is facing continued uncertainty — from the impact of global economic conditions to achieving sustainability aspirations and also with regards to skills, labour and productivity. Investment and the adoption of new technologies are critical, as well as ensuring the best use of resources.
Our worldwide teams remain your constant advisors to support your growth.
View more reports below
Research team contacts
James Garner
Senior Director, Global Head of Insights and Analytics
Edna Benavides
Insights and Analytics Manager, EMEA
Nicola Sharkey
Project Director, UK Insights and Research Lead, UK
Padmini G
Market Research and Client Engagement Manager, India
Res Orgut
Senior Project Consultant, USA
Sherif Sweillam
Director of Business Development, Egypt
Legal disclaimer: This report was prepared by Gleeds and is for general information only. Neither Gleeds nor any of their partners, directors, employees or other persons acting on their behalf makes any warranty, express or implied nor assumes any liability with respect to the use of the information or methods contained in this paper to any person or party. This document is subject to copyright and must not be reproduced.
