KPMG

Increase in backlogs and margins underscore renewed optimism across global construction industry

After prolonged economic uncertainty, a majority of companies in the global engineering and construction sector have fresh confidence in the growth prospects for the industry, according to KPMG International’s 2013 ‘Global Construction Survey: Ready for the Next Big Wave?’

A general increase in backlogs and margins is giving cause for optimism across the industry, with further growth anticipated. Just more than 50 per cent of 165 mostly C-level respondents from the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific (AsPac) regions say their companies experienced an increase in backlogs of at least five per cent in the period from 2012 to 2013. Moreover, although margins are not rising at the same rate as backlogs, 80 per cent say their margins will either remain stable or increase by more than two per cent in the same period.

Not surprisingly, the Americas have the highest confidence for growth, with 90 per cent forecasting margins as stable or increasing by more than two per cent. By contrast, 28 per cent of companies in the AsPac region see margins decreasing below two per cent…

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