Construction Predictions 2022
Deloitte launched Construction Predictions 2022 campaign, aimed at sharing trends and insights within the Engineering & Construction (E&C) sector. E&C leaders from different countries have cooperated to create this collection. Every issue we will publish a new prediction, discussing various subjects.
#6: Future of Taxation in Construction
Published date: July 19, 2022
The international tax landscape has evolved in the last decade and is expected to change further in the near future. A key driver of transformation in the international tax system is the political agreement reached by the Organization for Economic Cooperation and Development (OECD)/ G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on how taxation rights on income should be allocated among jurisdictions, and how much income should be taxed. Agreed measures, which should apply from 2023, and are expected to transform the international tax system.
#5: Digital Trends
Published date: June 15, 2022
Traditionally, digital solution adoption has been a challenge for the industry where a ‘build once’ approach does not support investment in non-traditional, high-cost solutions. However, with Industry 4.0 solutions such as blockchain, digital twin, and virtual and augmented reality (VR/AR) becoming more accessible, affordable, and widespread throughout the supply chain, and more agile practices becoming more common place, it is no longer a question of ‘if’, but ‘when’ and ‘how’ firms invest and implement digital ways of working.
#4: ESG Trends in Construction
Published date: May 5, 2022
Construction firms are embedding Environmental, Social and Governance (ESG) principles into their planning and operations, adopting a range of approaches with varying degrees of success.
This article sets out three observations about how ESG will be adopted and evolve in the construction industry, and how this could improve the impact of the Industry on the environment, community, and workforce.
- Standardization and commoditization of ESG measurement
- Integrating ESG into early project planning
- Workforce wellbeing & Sustaining the industry
#3: Infrastructure Real Estate Investment Trust
Published date: April 21, 2022
Infrastructure real estate investment trusts (REITs) and their impact on the construction sector
Infrastructure construction projects mainly involve transportation, water and power supply networks, communications facilities, ecological and environmental protection, and municipal facilities. In recent years, infrastructure has become a way for countries to promote economic growth and secure employment due to its "multiplier effect", which can drive total social demand that is several times the size of infrastructure investments. Since 2020, global economic growth has slowed as the COVID-19 pandemic has taken hold, and major economies have sought to stimulate economic growth through infrastructure construction. Infrastructure REITs could be a means of fostering the deployment of capital in the Infrastructure sector.
#2: Standarization and "industrialization" of construction methods in building construction
Published date: April 7, 2022
Industrial opportunities as a solution for the current challenge
Construction margins are under pressure worldwide due to shortages in skilled labor, (material) supply chain, low entry barriers and a shortfall in sector productivity growth, while climate goals increasingly challenge traditional construction methods and materialization (Net Zero Challenge). In the search for increased efficiency and predictability, control over supply chains, better margins and a workaround for labor shortages, companies are accelerating innovation and digitization in order to industrialize construction methods.
#1: Building cybersecurity in the Construction Industry
Published date: March 24, 2022
Why should construction and infrastructure companies shape a resilience strategy in the age of ransomware warfare？
Construction 4.0 is transforming the industry landscape in an unpredictable way. Artificial intelligence (AI) and advanced analytics (AA) are enabling new efficiency and creating new risk management paths.
Cyber-physical systems should enhance the delivery and management of connected construction facilities for both greenfield and brownfield projects. Digital security will be considered essential to avoid disruption and raise resilience.