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COVID-19: Engineering and construction response

June 1, 2020

Impact of COVID-19 on the engineering and construction industry

Analysts forecast a particular struggle in the commercial and industrial sectors as businesses in these sectors are most at risk from the economic downturn and their immediate priorities will likely be on business continuity rather than investing in new premises.

The residential sector will also contend as economic activity weakens and unemployment rises, despite low interest rates and direct government support. There is a high risk that a large proportion of early stage projects in these sectors might be cancelled or pushed back.

Governments and public authorities are expected to focus on advancing spending on infrastructure projects to reinvigorate the industry. The success of government efforts to spend heavily is likely to be constrained, depending in part on their current financial position and debt.

COVID-19 is putting the value chain under considerable pressure

Potential digital solutions to face current challenges

1. Fit for purpose: Manage cash imperative and revisit operating models

2. Smart operations: Adopt new and safe ways of working

1. Enable remote working when possible

HR and IT organizations should prepare for large-scale remote collaboration with liquid architecture, virtual workplace and digital applications.

2. Secure workers on construction sites

Construction companies must implement measures to minimize the spread of COVID-19, whilst ensuring previous health and safety measures continue to be followed.

3. Resilient supply chain: Invest to mitigate risk and to differentiate

4. Growth to the new normal: Manage projects and contracts with agility

5. Precision pivot: Reinvent new business models

The COVID-19 crisis will accelerate transformation

This is the time to shift from a frantic race to the lowest price to competition on total value created.

Engineering & Construction: How to Outmaneuver Uncertainty and Emerge Stronger

Contact us

Gregory Christophe

Managing Director – Engineering and Construction, Global

Charlotte Bizeau

Managing Director Technology Consulting – Engineering and Construction Lead, Emerging Markets

Michael Gallomazzei

Senior Manager Technology Consulting – Engineering and Construction Lead, North America

Jordi Batlle

Executive Technology Consulting – Engineering and Construction Lead, EMEA
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