KPMG Infrastructure and Transport CEO Outlook

Despite ongoing economic and geopolitical uncertainty, Infrastructure and Transportation CEOs anticipate growth over the coming three years – both in terms of earnings and headcounts. But key challenges continue to create roadblocks to achieving that growth.

The CEOs in our survey noted concerns related to talent shortages, technology adoption and climate risk. They say they are worried about the risks of generative AI and missing their Net Zero targets. They talk of shifting stakeholder expectations and complex technology environments.

Yet they also show encouraging ambition and action. They are intent on investing into expanding their AI capabilities and skills. They are prioritizing their workforce and developing their talent. Perhaps most importantly, they are more focused than ever on building public trust.

Growing in an uncertain environment

63% of Infrastructure and Transportation CEOs expect earnings to grow by more than 2.5% over the next 3 years, but they are concerned about the impact of generative AI and other new technologies, the current state of the global economy and the competition for talent.

Building public trust

With confidence and trust in governments declining around the world, 62% of sector CEOs believe the public is looking to businesses to fill the void on societal challenges and 71% are willing to divest a profitable part of the business if it was damaging their organization’s reputation.

Prioritizing climate risk

CEOs think environmental and climate change impacts pose the second biggest risk (behind operational issues) to their organizations but 57% of our respondents also say that stakeholder expectations pertaining to ESG are changing faster than they can adapt their strategy.

Driving digital transformation

68% of sector respondents say that generative AI is a top investment priority, despite ongoing economic uncertainty, but they also note significant concerns about the challenges associated with implementing generative AI led by worries about bias, data protection and lack of transparency, for example.

Shaping the workforce

93% of sector CEOs plan to increase headcount over the next 3 years and the majority expect generative AI to – if anything – increase their headcount. But competition for skills is fierce and sector CEOs say talent challenges will likely have a negative impact on their company’s prosperity over the next 3 years.