Low-cost competition a serious threat
More than half of engineering and construction CEOs see low-cost competition as a serious threat to growth. Their concerns reflect the fact that some have been pricing work more aggressively, focusing on short-term wins possibly at the detriment of long-term profitability.
In-depth CEO story
 Chip Hornsby
Group Chief Executive, Wolseley plc, UK
Abandoning M&As for joint ventures
This year, fewer than half as many CEOs expect to complete cross-border M&As over the next 12 months, as compared to last year. CEOs have identified cross-border joint ventures and strategic alliances as opportunities for growth over the next three years.
Beware contract disputes
As the sector becomes more financially constrained, there is an increased likelihood of contract disputes. Such disputes can inflict considerable damage on a company's brand, tarnishing its reputation with partners and customers alike. Long term, CEOs should try to minimise the danger of getting embroiled in disputes by assessing their supply chain risks very carefully and choosing subcontractors who can fulfil their obligations.
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Government and industry still have much to learn about working together
Many governments see contractors as service providers, rather than as partners with whom they could develop the most appropriate infrastructure solutions. This may explain why 34 percent of engineering and construction CEOs believe governments do not seek private-sector input into the design of policies and regulations.
Climate change creates opportunity
Excellent opportunities exist for companies that can develop a proactive strategy to capitalise on the opportunities fostered by climate change. Engineering and construction CEOs are ahead of the pack in terms of recognising the commercial implication of climate change. Twenty-nine percent believe that threats to the general population and to property due to climate change will have a positive impact on their businesses, compared with 13 percent of CEOs across other industries.
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