In the dynamic world of engineering and construction, it’s been quite the rollercoaster lately. Economic dips hit industries hard, and the architectural, engineering, and construction (AEC) sector felt the ripples. But, here’s the twist – it’s bouncing back. Imagine a seesaw – while commercial construction weathered a bit of a storm in the COVID-19 era, residential construction pumped up demand. It’s like one of those classic comeback stories.
Now, don’t get me wrong, we’re not riding unicorns here. The sector has its hurdles. Interest rates played the mischief-maker in the residential scene, and supply chain hiccups still pop up. But the show goes on, and it is safe to say that the AEC industry stands strong.
In this week’s exploration, we delve into the engineering realm, spotlighting construction tech like AI, industrialized construction, and off-site innovations. Our focus extends to energy-efficient structures and the imperative role of digitalization, especially Building Information Modeling (BIM). Uncover how nonresidential segments thrive on infrastructure funds and navigate through challenges, including market shifts, talent shortages, and technology integration. Come join us in decoding the trends that are shaping the engineering and construction landscape. Your thoughts? We’re all ears as we navigate these exciting developments together.
Chairman Consulting Quest
This week’s must read
In this edition of This Week in Consulting, we explore market acrobatics, talent shortages, and the wild ride of integrating new tech.
In LEK’s analysis, the AEC sector benefits from market advantages but often expands aimlessly. Firms require systematic market analysis for targeted growth, emphasizing strategies aligned with capabilities. Purposeful expansion through talent-centric approaches ensures sector relevance and success.
This week’s media
Esteemed industry figures Jerry Makahi and Hardy Wenzel dissect 2023’s construction technology trends, spotlighting industrialized construction, mass timber manufacturing, and advanced tech like BIM and AI. Insights into off-site construction, energy
During economic downturns, Grant Thornton notes increased fraud risks in construction due to factors like heightened interest rates and labour shortages. Historical data highlights this correlation, emphasizing the need for strategic solutions like detailed cost estimates.
Deloitte’s 2023 report on engineering and construction predicts divergent sector growth. Nonresidential segments benefit from infrastructure funds, contrasting sluggish residential expansion due to waning consumer demand. Challenges include market shifts, supply chain disruptions, talent shortages, and technology integration.
This Infosys report delves into AEC’s need for digitalization, highlighting BIM’s role. It stresses seamless data integration via Infosys EPC Solution, emphasizing efficiency gains, cost reductions, and improved safety through digitization and integration strategies.
McKinsey examines the US construction challenges: high costs, and labour shortages. Modular systems promise 20-50% quicker projects and 20% cost cuts. The US lags behind; only 4% use modular methods. Solutions: optimise designs, manage capital, and build partnerships.
This week’s consulting news selection
Alvarez & Marsal appoints Brooke Hopkins, an expert in complex investigations and compliance, bolstering the firm’s Disputes and Investigations practice.|
Treliant appoints Laura Huntley as Managing Director in Regulatory Compliance, emphasizing resilience amid regulatory challenges. Her expertise fortifies client strategies.|
FORVIS and Mazars merge as Forvis Mazars, a top 10 global network, enhancing client service with expanded capabilities for international needs.|
Peyman Tabatabaei, a seasoned geotechnical engineer, joins HKA Los Angeles as Director. His expertise expands FTS capabilities for global infrastructure solutions.|
Laurent is the Chairman and Co-founder of Consulting Quest. Focused on greater value creation, and being thoroughly familiar with Consulting, Laurent has sourced and sold millions of dollars worth of Consulting over the course of his career. Prior to joining Consulting Quest, Laurent was Executive Vice President Oil and Gas at Solvay and Senior Partner Transformation at Oliver Wyman.