The global construction industry is at a pivotal moment. KPMG’s latest survey reveals a sector energised by opportunity, yet challenged by complexity and risk. Explore how industry leaders are responding to the paradox of progress — and what it means for the future of construction worldwide.
The paradox of progress: High demand, low risk appetite, and the urgent need to transform
Growth meets caution
The construction sector is betting big on growth, but bracing for intensifying headwinds. 71% of respondents are optimistic about the industry’s direction, up from 66% in 2023. Robust government stimulus and demand for sustainability-linked and AI-driven projects are fueling optimism, yet the environment remains volatile.
Executives are navigating macroeconomic headwinds, supply chain fragility, and mounting regulatory pressures. The tension between increased risks and greater risk aversion is reshaping strategies across regions and the value chain. Companies are balancing the need to innovate and expand with the imperative to protect margins and manage uncertainty.
The transformation imperative
To drive growth in today’s environment, organisations must revitalise their priorities and capabilities. The imperative to transform has never been stronger, with companies aligning strategic priorities to operational levers.
Sustaining growth in uncertainty requires careful balancing of priorities and optimising operational capabilities. The survey reveals encouraging alignment between what companies want to achieve and how they plan to get there — through workforce development, digital systems, and new delivery models. Companies that manage these levers effectively will be the ones to turn ideas into innovation, build resilience into every project, and deliver faster, safer, and greener outcomes.
Empowering people for performance
People are the cornerstone of scalable transformation in construction. The sector’s biggest barrier isn’t technology — it’s workforce readiness.
Companies are doubling down on talent, culture, and leadership. Digital fluency and mechanisation skills are now essential for productivity and innovation. The next leap in performance will come from empowering teams with the right skills and tools. Talent shortages and capability gaps are the key barriers, with retention, outdated skills, and an ageing workforce all contributing to the challenge.
The survey signals a global shift: firms aren’t just betting on tech — they’re doubling down on talent, culture, and leadership. Across regions, workforce initiatives take the largest share of transformation spend — a clear sign that progress depends on people, not just tools.
Integrating technology for growth
Technology is no longer a peripheral enabler — it’s central to reshaping how projects are planned, built, and delivered. From AI to IoT, smart tech is revolutionising construction.
Companies are moving from isolated tech adoption to scalable, integrated capabilities. The challenge is to embed technology seamlessly across the value chain, upskill the workforce, and align tech initiatives with modern delivery models. Technology investments deliver value only when supported by strong data foundations, intuitive adoption strategies, and scalable implementation models.
Rethinking delivery models for resilience
Delivery models are evolving from transactional contracts to strategic ecosystems that align incentives, share risk, and unlock performance. Sustainability is becoming a business imperative, but embedding it remains a challenge. The future of delivery is about integrating people, digital, sustainability, and supply chain reform.
The good news is that more than half of organisations expect collaborative contracting, supply chain digitisation, and offsite manufacturing to become standard within five years. This signals a shift: resilience is evolving from a reactive safeguard to a strategic capability, enabling agility, innovation, and long-term value creation.
About the survey
This year’s Global Construction Survey draws on the perspectives of 375 engineering, construction, and real estate leaders, collected through online surveys and in-depth interviews with KPMG experts and industry executives in early 2025. The findings provide a nuanced view of the sector’s challenges, opportunities, and the strategies leaders are using to build future-ready organisations.
