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Infrastructure Demand To Place Weight On Construction Sector, Supply Chains

While a number of markets, particularly those in Europe and North America, have suffered a drastic decline in construction activity and demand, few analysts expect this trend to continue indefinitely. The demand for global infrastructure improvement is simply too great.

A report released this week by KPMG shows more than 40 percent of surveyed engineering and construction companies expect the energy sector to offer the greatest opportunity for revenue over the next year, with similarly high expectations for road and bridge construction and housing development.

As this trend unfolds, the stress on the global supply chain is expected to grow heavier, underscoring the need for companies to adopt management strategies throughout their procurement network.

"To mitigate risk, manage project complexity and effectively meet the anticipated increase in demand, companies are seeking supply chain solutions to address efficiencies in their procurement," KPMG reported in a press release. "Nearly 60 percent of respondents say improvement in this area will improve profits and enhance cash flows."

Another 40 percent of respondents agreed that the primary cause of inefficiencies in the supply chain was having unaligned processes and systems.

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