International
Despite the slow pace of economic recovery to date, many leading engineering and construction (E&C) companies worldwide offer a somewhat bullish outlook for 2011, a global study from KPMG International has found.
Findings from the KPMG 2010 Global Construction Survey, Adapting to an Uncertain Environment, indicate that close to half of respondents in the KPMG survey forecast rising backlogs in 2011 from pent-up demand; expansion into new services, such as power; or moving into additional geographies, such as the Middle East, Asia, Australia, Africa and India. Asia Pacific demonstrated the most promising outlook in backlogs in 2011 with 21 percent of respondents confident of a significant increase.
The lingering economic downturn and associated constraints have generated a movement among E&C companies to create stronger, more resilient business models that can weather change and manage risk. Seventy-seven percent of respondents to the KPMG survey said they have in place sophisticated systems to effectively manage risk.
"The willingness of contractors to move into new markets, and possibly to evolve their value proposition, could be the difference between thriving and merely surviving," said Geno Armstrong, international sector leader of KPMG's Engineering and Construction practice. "With margins unlikely to rise for traditional business, such a repositioning could be vital. North American firms can learn a tremendous amount from the experiences and successes of their counterparts in other markets, particularly the ways in which projects are being financed."
According to the KPMG survey, margins have been cut over the last year, as most respondents said they had to reduce prices. However, the impact has been lessened due to cost-cutting measures. Looking ahead, more than 30 percent said they are bidding on new projects with lower margins, but that factor is offset by the sentiment that backlogs are predicted to rise.
United States
America's 10 largest publicly traded homebuilders have started to improve their policies and practices relating to the environment and resources, but much progress remains to be achieved, according to a major new study by sustainable and responsible investment firm Calvert.
Titled 'A Green Recovery for America's Homebuilders? A Survey of Sustainable Practices by the Homebuilding Industry', Calvert's 2010 survey of major homebuilder sustainability notes: "Out of 42 [possible] points, the average total score was just over six points, or 15 percent.
While all 10 homebuilders have made some effort to develop environmental policies or practices, or to offer environmental products, there is strong differentiation in the level of commitment to sustainability and the penetration of 'green' homes in each company's product mix.
Without leading US companies KB Home and Pulte Homes, the overall analytical performance of the industry in our study would have been far worse - scoring an average of less than 6 percent against key green data points.
United Kingdom
The UK Housing Minister Grant Shapps has announced the scrapping of both HCA building standards for Government-funded homes, and the setting up of a new Local Standards framework in an address to the National House-Building Council, at which he asked the industry for a list of 'red tape' to axe from the industry.
The Minister called for housebuilders to compile a "Christmas Wish List" of regulatory red tape that they would like to see come to an end during a consultation process that will last until the end of December.
Germany
Chillventa 2010 was deemed a success, with 29,312 trade visitors from all over the world meeting at the exhibition at the Nürnberg exhibition centre from 13-15 October 2010.
It was the hub of the international refrigeration, air conditioning, ventilation and heat pump community, with 881 companies from 42 countries presenting the variety and innovative power of a whole industry.
Heinrich Reuß, chairman of the Chillventa Exhibition Committee comments: "Chillventa 2010 was a great success for the exhibitors from all over the world. We had the right visitors on the stands and held highly qualified talks. The mood at Chillventa showed the way ahead for the industry. Chillventa has class, here you meet the decision-makers and professionals. I'm already looking forward to the next exhibition."
