As the global construction industry navigates through the aftermath of successive global disruptions, the necessity for transparent, agile and resilient operations has never been greater. KPMG International's report Resilient by design explains where the industry is focusing its attention, highlighting key risks and opportunities at the business, regional and market level.
Around the world, the global construction industry is navigating a critical juncture, shaped by the lingering impacts of the COVID-19 pandemic, geopolitical instability, and the accelerating pace of climate change. While confidence is high – 71% of the 375 industry leaders we surveyed globally expressed optimism about the construction industry while 43% are experiencing increased supply chain risks and pressures. These forces underscore an urgent call for transformation, not as a strategic choice, but as a structural necessity.
Industry players must re-evaluate traditional delivery models, embrace digital innovation, and embed sustainability comprehensively in every project and partnership. With supply chains under increasing strain, regulatory expectations multiplying, and growing scrutiny from stakeholders and governments, the demand for transparent, agile, and resilient operations is at an all-time high.
Video summary
Construction survey data: Australia vs Global
Australian construction industry challenges & priorities for 2026
Across Australian construction respondents, the dominant challenges are cost, competition, and supply chain uncertainty.
Most common challenges
- Competition, material / equipment costs, and supply chain risks are the most frequently cited challenges.
- Interest rates / financing conditions and client spending patterns are also prominent, reflecting ongoing macro‑economic pressure.
- Sustainability expectations from stakeholders feature strongly, indicating ESG is now a mainstream risk rather than a niche concern.
Secondary but notable challenges
- Keeping pace with investment in AI and new technologies
- Managerial and technical capability gaps
- Increasing size and complexity of projects
- Skilled labour shortages
Overall, the challenge set reflects a combination of external economic pressure and internal capability constraints.
Respondents are strongly focused on risk management, digital capability, and efficiency.
Top strategic priorities
- Managing risk more effectively is the most frequently selected priority.
- Improving data and technology capabilities ranks second, highlighting digital enablement as a strategic lever.
- Profit improvement through efficiency/cost control remains a core focus.
Outlook for the construction industry in Australia
Australia is broadly as optimistic (or more) than global.
Executives remain 'cautiously optimistic', with 71% positive about growth in the construction/infrastructure sector and 73–75% positive about revenue growth and productivity improvement.
- 75% positive about growth in the construction/infrastructure sector globally (vs 71% global).
- 75% positive about revenue growth (very close to 73% global).
- 68.8% positive about improving productivity (vs 75% global).
- 93.8% positive about attracting/retaining talent (vs 68% global).
- 87.5% positive about managing risk effectively (global slide set flags increased risk aversion and risk pressure).
What this means
Australia is at least as upbeat on market and revenue, markedly more confident on talent and risk capability, but less bullish on productivity improvement than the global headline.
Download the report
Get in touch
- Jessica
- Amanda
- Pedram Danesh-Mand
