Construction is again on the rise and revenues from commercial, residential, public sector and infrastructure projects are growing again. The global construction industry has projected increases in capital expenditure on new development and purchases in this segment. However, engineering and construction (E&C) firms face new demands and heightened expectations to improve margins/shareholder returns and improve operations, all in an environment where project complexity is increasing. These new demands are in addition to the constant pressure to deliver projects on time and on budget.
One way E&C firms can get their own houses in shape is to closely examine their supply networks and procurement operations, with the objectives of optimizing costs and streamlining operations, both of which would improve their competitive position.