Paul Thomen

Friday, 17 May 2013

Global Construction Industry Procurement Strategies Survey 2013-2014

Overall, 53% of respondents in the global construction industry are more optimistic about revenue growth for their companies in 2013. This is due to the increased investments on IT infrastructure and other public and private sector construction projects as well as growing demand for sustainable construction.

Executives from the global construction industry expect to see increased levels of consolidation, with 50% of respondent s anticipating either a ‘significant increase’ or an ‘increase’ in their merger and acquisition activity in 2013. They also anticipate a considerable increase in capital expenditure on ‘new product developments’, ‘IT infrastructure developments’ and ‘machinery and equipment purchases’. This will result in an increase in their workforces.

These same respondents identified India, Brazil, the UAE, China and Saudi Arabia as promising emerging markets for 2013. Construction activity in India has increased steadily due to growth in infrastructure development in housing, roads, ports, aviation infrastructure and power generation making the country one of the leading emerging markets in the global infrastructure industry. Additionally the US, Canada, Singapore, Australia and the UK were identified as chief growth regions among developed countries. However, France, Italy and Spain are expected to offer low growth potential.

The five product and services that are expected, by most construction contractors and developers, to receive investment over the next 12 months are ‘building materials’, ‘water supply and waste management’, ‘plant and heavy machinery’, ‘fire detection and suppression’ and ‘architects’, as stated by 51%, 39%, 37%, 36% and 34% of respondents respectively.

Furthermore, survey findings of the 2013 construction survey reveal ‘quality’, ‘level of service’, ‘supplier’s record for reliability’, ‘price’ and ‘existing relationship with supplier’ as important factors for supplier selection by contractors and developers. On the other hand, ‘supplier’s CSR reputation’, ‘proximity of supplier operations’ and ‘supplier’s environmental record’ are considered the least concerned factors in supplier selection. In addition, the survey reveals that while 12% of respondents are willing to implement e-procurement, 48% are already in various stages of implementation.


The report features the opinions of global construction industry respondents related to the following:
- Revenue growth projections
- Capital expenditure of construction industry buyers and suppliers
- Leading business concerns and the subsequent efforts to negate them
- Procurement budgets of buyer companies
- Critical factors that influence supplier selection
- Future procurement objectives and E-procurement
- Key variations in operational costs

Reasons to buy

- Gain an overview of the revenue growth expectations and top priorities in the next 12 months.
- Outline the changes in capital expenditure of construction contractors, developers and supply companies in 2013.
- Identify the most important ways that suppliers can help contractors and developers businesses in the current business climate.
- Analyse the average size of global construction industry annual procurement budgets for contractors and developer respondents.
- Identify the extent to which e-procurement has generated interest in the global construction industry. 

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