The survey covered 165 companies in 29 countries around the world, operating in the fields of development, construction, investment, infrastructure and engineering. The respondents' annual revenue varied in size from turnovers of US$250 million to more than US$5 billion.
The survey revealed that a general upward trend in backlogs and margins is giving cause for optimism across the industry. As economies recover after a prolonged recession, more new projects are starting to emerge, with increased funding available to maintain and build infrastructure, and develop power and mining capabilities.
This year, the answers from the Russian respondents mirrored those of their colleagues abroad in practically all key issues: their growth expectations for the industry, approach to risk management, and their views on the role of public-private partnerships. This indicates that compared to previous years Russian companies have a more mature understanding the industry issues.
However, it should be noted that in some important aspects the Russian respondents' answers differed from those from construction companies in other countries. For example, whereas the latter are placing high hopes on the power and energy sector, Russian companies see the biggest opportunities in the construction of sports facilities and transport infrastructure, as Russia prepares to host the Winter Olympics in Sochi in 2014 and the FIFA World Cup in 2018. Furthermore, as prices for construction projects in Russia have not fallen as much as they have globally, the mood of optimism linked to the current upturn is less noticeable in the Russian market.
The survey also includes an analysis of the quality of work by construction companies with subcontractors in the Russian market. This reveals that construction and real estate market players have recently started placing greater emphasis on the quality of subcontractors and the selection process for them, and on control procedures to ensure that construction costs are kept to a minimum and deadlines and budgets met.
Optimism over future prospects
Growth is on the agenda
Areas for expansion
Barriers to growth
Work with subcontractors in Russia
KPMG International’s 2013 Global Construction Survey catches the industry in a more upbeat mood after several years of falling backlogs.
© 2017 KPMG Audit LLC, the Mongolian member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.