The “Construction Industry in 2030” report published by KPMG reveals what kind of world awaits the construction industry in the future. As in many sectors, the construction industry has been going through a dramatic process by taking its share from the problems experienced globally in recent years. COVID-19, disruptions in supply chains, ongoing material shortages, rising inflation, war in Ukraine and talent shortages are just some of them. All these developments are also compounding long-standing challenges in the industry, such as low productivity, inability to attract new graduates, volatile economic cycles, low contractor margins and a lack of clear forecasting of costs for contractors, adding to uncertainties. KPMG's “Construction Industry in 2030” report guides the players in this uncertainty period and reveals what kind of future awaits the construction world in 2030.
Making a statement regarding the report, KPMG Turkey Construction Industry Leader Engin Ölmez said, “This study aims to look at the construction world in 2030, turn eyes to the future, and then reflect on the progress made today. Looking to the future is always interesting. This perspective can also provide beacons and inspiration to help take the necessary steps to move the industry forward and unlock its true potential. In 2030, we predict that we will see an industry that has modernized, embraced innovation and learned lessons from other global industries, and has made great strides by leveraging technologies and new ways of working. We anticipate that construction companies will do much better financially by achieving healthy margins and having the courage to say 'no' to high-risk or high-carbon projects. We also think that the industry will successfully go through a process where it will embrace breakthrough technologies and incorporate these technologies into the construction ecosystem.” said.
According to KPMG's report, the industry is expected to undergo a comprehensive transformation within the framework of the following main trends:
Productivity will rise to record levels
By 2030, productivity will have increased to a record high on timely, affordable, and high-quality projects. With the proliferation of data sharing, common data standards and interoperability, greater transparency across the value chain will emerge. This transparency will help project managers identify and resolve issues quickly, minimizing delays and cost increases. Whether it's a measurement error, a leaking pipe, or damage to vital infrastructure, problems will be resolved early, allowing projects to continue uninterrupted. With the use of IoT, artificial intelligence, machine learning, automation and analytics, decision making will be greatly improved and sensors will be able to detect previously unseen problems.
Pushing the limits of innovation
In the future, the construction industry will embrace innovation with open arms. Companies will adopt a startup mindset through innovation labs or centers separate from the main business. Some players will acquire startups inside and outside the industry and partner with other leading players in the construction ecosystem. The sector will gain expertise in the field of data, and construction companies will be positioned as “data companies that build concrete structures”. To these advances; It will be realized with the contributions of talents from non-traditional sources such as data science, artificial intelligence and technology companies, as well as employees who are attracted by innovation within the sector.
Reliable and flexible supply chains will be established
The sector in 2030; Suppliers will be seen as partners in strategic innovation as they move into long-term partnerships where risk and profit are shared throughout the supply chain. As a result, supply chains will be much more transparent, making it easier to detect issues and report ESG. The industry will also turn more towards the use of local resources, which reduces transportation costs, reduces its carbon footprint, and protects against resource shortages caused by geopolitical events and the risks of disruption from climate change.
It will be an attractive sector for career
The construction sector, which will undergo a major transformation, will become a preferred sector for new graduates, offering exciting career opportunities to employees. Most of the work traditionally done in the field will be moved to factories and design offices; Remote working under flexible and convenient conditions will become more common and work-life balance will come to the fore. The diversity barrier in the sector will be overcome, and more women and talents with different educational and professional backgrounds will flock to the sector.
ESG reporting will be adopted
The construction industry will build on next-generation sustainable infrastructure, including renewable energy facilities and energy-efficient buildings with a low lifetime carbon footprint and low water use. Consultations with those affected by projects will be held early and will continue throughout the life cycle of the project and beyond. Buildings and infrastructures to be constructed by the sector; will become much more resilient to the effects of climate change, such as rising sea levels, floods, droughts, heat waves and forest fires. Construction businesses will take an ethical stance and make high standards of ESG (environmental, social, governance) reporting. You can find the full report here.