2021 engineering and construction industry outlook

Article

2021 engineering and construction industry outlook

Explore five engineering and construction industry trends that will impact 2021.

Despite the challenges of 2020 there are reasons to be optimistic in the engineering and construction (E&C) industry. Explore five engineering and construction industry trends that will impact the coming year, from connected construction to new business models.

E&C companies adapt to ongoing impacts of the pandemic

The E&C industry, learned from the 2008 recession and was well-positioned to weather the economic shock of the pandemic. It had better control over its leverage and credit and created a buffer through additional cost savings. However, industry performance during the remainder of 2020 has been mixed. Some E&C companies were more exposed to COVID-19–affected segments (like retail and hospitality), while others were not able to capitalize on technology advancements. Most E&C companies continue to face sustained cost and margin pressures. Additionally, despite strong order books, companies are experiencing challenges such as project delays and cancellations, as well as difficulty obtaining permits. In addition, increases in the procurement costs of materials and equipment continue to stymie many E&C companies.

The good news is that there are reasons to be optimistic for the future of the engineering and construction industry. Connected technologies and an increase in associated investments may help firms realize new operational efficiencies. New business models and an increase in M&A activity are further accelerating the shift toward digital transformation in engineering and construction, as well as operational efficiencies. Also, E&C companies are likely to help other industries unlock the future of workplace solutions.

Find more details on the E&C trends for 2021 in the full report.

Receive the 2021 E&C industry outlook

Preparing today for tomorrow’s unknowns in the future of the construction and engineering industry

Connected construction presents a host of efficiency- and productivity-enhancing technologies that can enable new business models and strategies. There may be another disruptive event around the corner that could catch the world off guard. But E&C firms that embrace digital, form strategic alliances, and prepare for the future of work are most likely to be better prepared for whatever comes next.

Our indystry outlook collection for the Energy, Resources and Industrials sector includes outlooks for oil and gas, chemicals, power and utilities, renewables and manufacturing. 

Review the entire collection of energy, resources, and industrials industry outlooks here.

Did you find this useful?