Deloitte has identified five key trends to help firms navigate volatility and capture growth in the year ahead.
by Rory Butler / November 24, 2022
The ‘2023 Engineering and Construction Industry Outlook’ outlines ways in which businesses can still thrive in a competitive market and against rising costs and labour shortages.
Trends to watch:
- Market dynamics – Monitor backlogs, especially in the second half of 2023. While some firms have substantial backlogs (specifically energy-related and data centres), they may see slowdown on deliveries.
- Supply chain – Increased lead times and costs pressure margins. Ongoing disruptions drive new business models and ecosystems, bringing innovative products and services to serve the unique end markets.
- Future of work – Rethink workforce strategies. With rising inflation and a tight labour market, firms may have to raise wages and benefits to attract and retain employees.
- Emerging technologies – Invest to drive efficiencies. With increased supply chain disruptions, competition, workforce shortages, and material costs, the need for Digital Transformation is much stronger.
- Sustainability – Increased global focus on Climate Change should incentivise firms to factor more deeply sustainability into their projects, processes and designs.
“Preparation is key for the year ahead,” said Deloitte. “2023 will likely experience differentiated growth rates across different industry segments.
“There are headwinds—from inflation to supply chain issues—which may continue to affect the industry overall in the coming year.”
It added: “While the sector has been historically slow to integrate and adopt digital technologies, industry players are now increasingly paying attention to and leveraging emerging technologies […] to expand business opportunities and boost profits by reducing costs in the long run and enhancing project execution.”
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