Construction sector displays deep resilience and optimism combined with commitment to digitization post-COVID, InEight Outlook finds
Ninety-two percent of capital project and construction professionals are optimistic about their organization’s future with 71% citing digital transformation as a key growth opportunity
SCOTTSDALE, Ariz. – InEight Inc., a global leader in construction project management software, has today launched its first annual Global Capital Projects Outlook. The Outlook, drawing insights from new research conducted with the world’s largest capital project owners and contractor construction professionals across the Americas, Europe and APAC, focuses on optimism levels and digitization, and found that despite COVID-19, 92% are either fairly or very optimistic about their future, and 91% believe their organization to be resilient.
Digital transformation is considered the biggest short-term source of opportunity according to 71% of respondents with data analytics, artificial intelligence and machine learning considered most critical for success for the next one to three years. However, respondents are divided on the ongoing impact of the economic situation, with 52% identifying economic recovery as an opportunity, and 47% identifying economic stagnation or recession as a risk to their organization’s growth in the coming year.
Despite the varying economic interpretations, respondents are largely positive when it comes to improvements being made by the sector to deliver projects on time and on budget. Sixty-one percent of owners and 50% of contractors say that, in the last three years, the number of projects delivered on or ahead of schedule has increased. Similarly, 56% of owners and 51% of contractors say the same for projects on or under budget.
Encouragingly, it is a trend that respondents report as set to continue, with 83% confident of completing future projects on or ahead of schedule, and 82% confident of doing so on or under budget. That said, the research revealed that projects that do go over budget, do so on average by 20% globally.
Commenting on the Outlook, Jake Macholtz, CEO, InEight, says: “The results of our Outlook speak to a construction sector that is brimming with confidence and optimism, one that has proved itself more than equal to the tremendous challenges it has faced this past year. It also points longer term to an industry continuing its digital evolution; many respondents report significant investments being made, or planned, to take advantage of the benefits digital transformation has to offer.
“With this in view, it is not a question of if support exists for digitization within our industry – we have known collectively for some time that the answer is most certainly, yes. It is instead a question of how this can best be implemented. The fallout from COVID-19 continues to be a risk that is hampering resources, yet with respondents shown to be equally aware that lagging behind on digital transformation will mean being potentially outpaced by the competition, I have full confidence our industry will collaboratively rise to the occasion and continue on an already well-trodden digital path.”
When comparing geographical differences, while all regions show positive intentions regarding digital transformation, the Outlook highlights a noticeable trend of APAC organizations ranking highest for their interest, investment and faith in technology to effect change. For example, a higher percentage of APAC respondents rate digital transformation technologies as critical to their organization’s success in the next one to three years. This may explain why investment in digitization is also higher for APAC respondents than elsewhere with 100% of APAC contractors reporting having committed investment to both project management software and connected worksite communications. While in Europe, 1 in 10 respondents have not committed investment in connected worksite communication; and in the Americas, 7% have not committed investment to project management software.
While regions across the globe gather digitization speed at slightly differing paces and employing varying tactics, what is a commonality, is that the construction industry is foundational to the success of economies and societies worldwide. It is encouraging that despite a difficult year, respondents remain resilient and optimistic for the future; committed to continuing as a vibrant, vital and innovation-minded industry.
To access the full report, visit http://ineight.com/globaloutlook-2021
About Global Capital Projects Outlook from InEight
This report is based on a survey of 300 large enterprise capital project and construction professionals, conducted over six weeks in February and March 2021, via an online survey. The survey included 25 questions designed to gauge general confidence and optimism levels across the industry (especially important during the pandemic), and assess track record, plans and attitudes towards digital transformation.
Of the 300 respondents, 100 each are drawn from our focus regions of the Americas, Europe and APAC, giving each equal weighting in the report. Globally, 64% of respondents are project owners, and 36% are contractors. All respondents work in construction, however in order to get a true reading of the global construction sector worldwide, we included those working construction roles within broader industries, including:
- Power and Utilities
- Commercial and vertical
- Mining & Minerals
- Water & Waste
- Oil, Gas & Chemical
The survey has been designed and conducted in conjunction with a specialized global enterprise technology market research partner, with results then analyzed and submitted to InEight experts for commentary based on their experiences and vantage points in the industry.
InEight provides field-tested project management software for the owners, contractors, engineers and architects who are building the world around us. Over 300,000 users and more than 750 customers worldwide rely on InEight for real-time insights that help manage risk and keep projects on schedule and under budget across the entire life cycle. From pre-planning to design, from estimating to scheduling, and from field execution to turnover, InEight has powered more than $400 billion in projects globally across infrastructure, public sector, energy and power, oil, gas and chemical, mining, and commercial. For more information, follow InEight on LinkedIn or visit InEight.com.