KPMG Future-Ready Index reveals that only 20 percent of the surveyed industry is 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 today. The market demand for firms with expertise to build climate-aware, data-driven smart cities is growing and capable firms are demonstrating leadership miles from the job site. They are rationalizing 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 prioritizing and benefiting from these back-office competencies.
“In the two short years since we last surveyed the market we've seen a particular jump in attitudes of construction executives toward the implementation and use of technology in their businesses,” said Geno Armstrong, Partner, KPMG in the US, Global Leader of Engineering & Construction, KPMG International. “In 2017 few organizations 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.”
The survey interviewed 223 global construction and engineering executives, scoring responses under three pillars to determine a benchmark of the industry. The benchmark index is comprised of Innovative Leaders (20 percent), Followers (60 percent) and those organizations 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:
Geno Armstrong adds, “We know the construction industry has been slow to realize the immense opportunity that technology and digitalization present, but now we can quantify how few companies are leading the rest of the industry. Unsurprisingly, the bulk of the industry exists in the middle of the pack, while twenty percent are quite a ways behind. The good news is that those in the middle can begin to make real strides toward leadership in the industry by putting in place a strategic road map.
For the complete results of the study, details about the methodology and to use the self-test tool, please visit the Future-Ready Index website.
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