Seeing the Bigger Picture Together:
Connected Data for Smarter Decisions
The third edition of the Global Capital Projects Outlook from InEight continues to build upon the themes of optimism and digitization. We have found the industry is made of grit and determination, unshakeable in its confidence and resilience in the face of extreme pressure.
Four key themes are covered in the 2023 Edition:
- The transition to renewable energy is a beacon of hope
- There is a clear divide between the data haves and have nots
- Opportunity lies in technology sophistication
- Shared risk and greater collaboration are coming to the fore
The Report’s Objective
We continued to benchmark how owners and contractors are meeting the challenges of global construction industry trends. After three years, we are confident in providing significant insights that point to a bright future for integrated technologies.
The survey included 26 questions designed to gauge general confidence and optimism levels across the industry and assess track records, plans and attitudes towards digital transformation. Globally, 67% of respondents are project owners and 33% are contractors.
Chapter 1: Confidence and Growth
Against a backdrop of challenges including materials, equipment and labor sourcing, it is remarkable the construction industry remains highly confident. Its sights are firmly set on the opportunities presented by sustainable building projects, digital technologies and a generous project pipeline.
Chapter 2: Project Certainty
While more projects are staying on schedule, the average overspend is also increasing. However, the industry is growing progressively smarter from experience, with industry benchmarks and historic data used almost half the time. The data suggests this is helping organizations hit cost and schedule targets.
Chapter 3: Seeing and Acting on the Bigger Picture
Few respondents have escaped some level of disruption to their projects in the last year as the effects of supply chain delays and inflation make themselves felt. Companies are using technology to keep tabs on the bigger picture and to maintain control, but approaches to that tech and its reported benefits differ widely.
Chapter 4: Technology and the Evolving Owner-Contractor Relationship
Amidst a global craft skills shortage and ongoing supply chain volatility, businesses are turning to technology to boost productivity and risk management. As a result, construction organizations will increasingly rely on technologies to understand the critical interplay between scope, cost and schedule.
Of the 300 large enterprise capital project and construction professional respondents, 100 each are drawn from our focus regions of North America, Europe and APAC, giving each equal weighting in the report.
The region continues to enjoy strong performance based on a healthy pipeline of capital projects. Retaining its title as the region with the most projects completed on time and on budget, greater focus on sustainability and shared risk highlights a sector that continues to look forward and innovate.
Rampant inflation and the war in Ukraine are having a wide impact in the region, posing risks to both the economic environment and supply chains. Despite this, the construction sector seems to be in good health, thanks in part to a robust pipeline of public infrastructure projects.
The region’s construction industry is the global laggard on project performance due to siloed systems, fragmented communications, and supply chain challenges. Yet this is helping forge a new industry through the adoption of best practices to progressive delivery models.
hear from industry experts on the research
Seeing the Bigger Picture: A special webinar touching on the Global Capital Projects Outlook report.
Director of Project Controls
North East Link Program
Australian Constructors Association
Executive Vice President
of APAC & Japan
Senior Vice President, Program Management Practice And Capabilities
Chairman & CEO
Sage Policy Group
Chief Product Officer
Head Of Account Management For EMEA
The projects that have progressed in the last 12-15 months are collaborative, early-contractor involvement models where we work with the owners and designers to value engineer the design to mitigate those risks. That ranges from choosing materials that are more readily available to making design changes that reduce on-site labor costs.
Customers are doing more with less, meaning that it isn’t necessarily a spending freeze, they’re looking for ways to improve efficiencies.
We have no shortage of work and no shortage of projects to be built to the point where the limiting factor I think really is labor. We’re short of experienced people on all of those projects that know how to build complex projects of that size and scope.
We need those project management tools to do our day job, which is to do an estimate, transfer that estimate into a budget for a project and then match the cost against the budget and forecast.
Understanding data management, data integrity, that’s so important.