The figure from is up 10 percentage points from last year, due in part to renewed confidence in the global economy.聽
Engineering and construction CEOs worry about raw material prices, capital markets and getting access to the right skills at the right price, but overall they鈥檙e still much more optimistic this year. That may be due to optimism over growth markets and the positive impact they expect to see from technological advances.
The results of PwC鈥檚 17th Annual Global CEO Survey finds that CEOs in the engineering and construction sector have renewed confidence in the global economy, which 50% now expect to improve over the next 12 months, up from just 11% last year. But strong growth in new markets is a big part of the equation too - 26% see new geographic markets as the main opportunity to grow their business, almost as many as are counting on an increased share of existing markets.
Most of the CEOs in the sector 鈥� 85% - see a need to alter technology investments. Technology is changing the face of the engineering and construction sector. Like their peers across the sample, engineering and construction CEOs see technological advances as the top trend which will transform their business. Many called some aspect of technology the 鈥渘ext big thing鈥� to impact their business, citing everything from new applications for formwork to techniques to better manage and use data. Most engineering and construction CEOs are optimistic about their ability to keep up -only 33% are concerned about the speed of technological change, compared to 47% of CEOs overall.
Raw material prices and workforce worries are looming, with just over three quarters concerned about high and volatile raw material prices. And the workforce is a matter of some concern too. Nearly one-third of the sector鈥檚 CEOs are extremely concerned about access to key skills. And 70% worry about rising labour costs in high growth markets. So it鈥檚 surprising that a quarter of CEOs still see no need to change their talent strategies in response to transformative global trends.
Bribery and corruption still a concern. Two-thirds of engineering and construction CEOs are concerned that bribery and corruption could slow down growth. Indeed, one-third are extremely concerned, compared to less than a quarter of CEOs overall.聽
More engineering and construction CEOs (12% vs. 1% of CEOs overall) rank Qatar as one of their most important growth markets over the next three to five years. And more (14% vs. 5% overall) rank 鈥渙ther Africa鈥� as a top growth market too. That puts it on a par with China for the sector 鈥� only the US and Germany are rated higher. When it comes to transactions, 23% of engineering and constructions CEOs who are planning M&A activity, a joint venture or a strategic alliance are looking to Africa in the next 12 months, right after Latin America, with 25%.
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