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Industrial Products & Construction
Delivering innovative, practical knowledge and experience to help companies in the fields of Industrial Products, Aerospace & Defense and Construction improve overall business performance. Global Industrial Products & Construction is part of the Global Energy, Resources & Industrials industry group.
2022 manufacturing industry outlook
Competing in the new market demands business agility
It’s unusual to see positive economic indicators paired with historic labor and supply chain challenges. But this is the trajectory for the US manufacturing industry in 2022 emerging from the pandemic. The recovery gained momentum in 2021 on the heels of vaccine rollout and rising demand. As industrial production and capacity utilization surpassed pre-pandemic levels midyear, strong increases in new orders for all major subsectors signal growth continuing in 2022.
However, optimism around revenue growth is held in check by caution from ongoing risks. Workforce shortages and supply chain instability are reducing operational efficiency and margins. Business agility can be critical for organizations seeking to operate through the turbulence from an unusually quick economic rebound—and to compete in the next growth period. As leaders look not only to defend against disruption but strengthen their offense, our 2022 manufacturing industry outlook examines five important trends to consider for manufacturing playbooks in the year ahead.
2022 engineering and construction industry outlook
Supporting the nation’s growth
The 2020 recession was among the shortest ever, but its impact continues to be observed across both the larger US economy and the engineering and construction (E&C) industry.
In 2022, as we move into the second year of recovery, the industry has a big role in supporting the nation’s growth plan. The Infrastructure Investment and Jobs Act (IIJA), with investments across health care, public safety, and other public infrastructure, is expected to bode well for the E&C firms and is likely to accelerate recovery across the nonresidential segment. The residential segment is expected to stay strong and exhibit similar activity as it did in 2021.
The industry has increased its investments in digital, including through mergers and acquisitions (M&A), as it prepares to shift toward connected construction capabilities. These technologies can help E&C firms support initiatives such as smart cities, urban air mobility, and climate change programs and help enhance internal operational efficiencies, reduce costs, and improve margins. 2022 is likely to be an exciting year for the engineering and construction industry, and our annual outlook explores five key themes to watch closely.