Construction sector

Article

Construction sector

What strategic options can be prioritized to create more value for your business?

The construction market is one of the most successful sectors within the Luxembourg economy with the number of enterprises and employees having grown dramatically over the years.
During this time, the sector has benefitted from structural growth as a result of strong demand and rising prices, but now the industry faces fresh challenges.
With a rise in competition, some companies have chosen to diversify their activities in order to find new growth drivers.
 

French version - Le secteur de la construction au Luxembourg

What we observe

The construction sector is currently experiencing several challenges:

  • Increased competition;
  • Difficulties in coping with the intensity of demand;
  • Struggles in hiring qualified workers;
  • Issues surrounding the supply of raw materials.

To assist the industry in overcoming these challenges, Deloitte Luxembourg has worked on a benchmark. Taking into account all key players within the Luxembourg sector, the benchmark positions them on two axes: market attractivity versus operational efficiency.

Here are some key observations:

  • The market remains fragmented and presents a great diversity in terms of growth and operating margins;
  • Numerous strategic options exist to allow construction players to progress or to secure their current positioning;
  • Some critical value creation factors are not sufficiently monitored and optimized by management teams.

The team at Deloitte Luxembourg can offer multiple strategic opportunities for companies within the construction sector.

What we propose

To help companies within the construction sector face their challenges, Deloitte Luxembourg has developed a 4-steps-approach called Value-Based Management, a method focused on attaining rapid, measurable, and sustainable results.

The Value-Based Management approach aims at prioritizing strategic options according to their value creation potential, and to implement them in order to create a long-term competitive advantage.

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Example of value delivered

 

SALES

E-orders +40%

Deadlines for sending bids -32%

 

PLANNING PROCESS

Use of trucks +56%

Use of subcontractors -10%

Stock shortage -70%

Raw material stocks -10%

 

EXECUTION

Support services’ efficiency +33%

Efficiency of construction site +5%

 

 

PLANNING PROCESS


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