Staff recruitment difficulties will be a major stumbling block for construction companies trying to expand to meet rising demand now that economic recovery is under way, warns KPMG in its latest Global Construction Survey.
KPMG found that all the companies surveyed in the UK planned to expand into the power and energy market, with 83% targeting railways, 33% industrial and 17% water. Most were also planning to expand into other regions. Companies in the Americas and Asia Pacific were even more optimistic, with 91% and 65% respectively having a positive or very positive medium term outlook.
KPMG said companies need to invest in growth now and market success will be won by those who have the resources to compete, including sufficient experienced staff.
Most UK companies see government infrastructure plans, global economic growth and urbanisation as key drivers of growth, with 73% either positive or very positive about prospects. Increased order books, growing order books and profit margins were also reported by most.
Launching the survey – Global Construction Survey 2013:Ready for the Next Big Wave – KPMG Power & Utilities Chairman Alastair Buchanan said:"Transmission network and gas distribution companies are expected to attract inward investment totalling £40Bn.
“The sector has already signalled around 5,000 jobs to be created, and the new GB pricing model awards, for the first time in 20 years, monies for research and development called innovation funding.”
This is just the start, Mr Buchanan said, with another £30Bn on electricity distribution in 2015, the roll out of round two offshore just starting, and £110Bn needed to expand power generation capability.
(Photo: Fin Fahey)