Digital transformation is the biggest short-term source of opportunity according to InEight’s first Global Capital Projects Outlook.
The outlook draws insights from new research conducted with the world’s largest capital project owners and contractor construction professionals across the Americas, Europe and APAC.
It focuses on optimism levels and digitisation, and found that despite COVID-19, 93 per cent of respondents in the APAC region are either fairly or very optimistic about their future, and 89 per cent believe their organisation to be resilient.
Respondents were divided on the ongoing impact of the economic situation, with 59 per cent identifying economic recovery as an opportunity, and 52 per cent identifying economic stagnation or recession as a risk to their organisation’s growth in the coming year.
Despite facing challenges such as border closures and material shortages, respondents are largely positive when it comes to improvements being made by the sector to deliver projects on schedule. Though when it comes to delivering projects on time, 61 per cent of respondents in APAC say that, in the last three years, the number of projects delivered on or ahead of schedule has increased, compared to 56 per cent and 54 per cent in Europe and the Americas respectively.
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Around 89 per cent of APAC respondents are confident of completing future projects on or ahead of schedule, and 91 per cent confident of doing so on or under budget. These figures reflect the highest levels of confidence in comparison to the 83 per cent and 82 per cent reported globally.
InEight EVP APAC Rob Bryant says it is encouraging to see the results of the outlook show a construction sector in the APAC region that is full of confidence and optimism, despite facing tremendous challenges this past year.
“Capital project spending is on the rise in APAC, as governments go on infrastructure spending sprees to avoid recession, which has led to high confidence levels locally.
While investment in the sector is increasing, organisations increasingly acknowledge the importance of digital transformation to keep projects on time and on budget,” Bryant said.
“Respondents in the region are acutely aware that lagging behind competitors in their digital transformation efforts presents the biggest risk to their organisations in the coming year. In fact, more than half of respondents list this as the biggest threat, compared to 30 per cent in the Americas and 37 per cent in Europe.
“The region shows strong appetite to invest in digital transformation, but this enthusiasm is being hampered by difficulties with integration and implementation, as well as issues such as a lack of available capital and return on existing investments.”