The importance of the construction industry globally
In order to potentially reposition a construction organisation in the future, part of the process is to understand the external environment in which the organisation operates.
- What is your guess at how much economic output and value construction is worth across the world?
- Is construction output due to rise?
- Where are the hotspots, the downturn areas, the just-about-break-even areas?
- What is the new technology?
- Why are we asking all of these questions?
Let’s address the last question first.
We are considering these questions because that is where organisations get their ideas, information and thoughts for their future business operations – the external environment in which they operate. It would be the background information which would feed into and influence the strategy formulation stage for the strategic management activity.
For construction globally, there are a couple of annual sources of reliable and useful information, as follows:
- From KPMG (a global professional service provider, offering financial audit, tax and business advice), which issues an annual global construction survey
- From Turner & Townsend (a global professional services company specialising in programme management, project management, cost management and consulting across the property, infrastructure and natural resources sectors)
Using one of the surveys above, or your own information, identify three key trends for the global construction industry in the next three years.
Post these three key trends in the comments. See whether your list of trends is the same as those of other learners.
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