The report below gives a good overview of the Fall 2022 M&A activity in the Engineering and Construction Industry Sector. The global Engineering and Construction market is expected to reach $10.5 trillion by 2023, as per report published by Research and Markets. The market is expected to grow at a CAGR of 11.5% to reach $39.4 trillion by 2031, during the period 2026-31, as per the same report. The increasing urbanization especially in developing countries and advanced construction methods like prefabricated construction is expected to drive the industry's growth. The rise in urbanization will result in increased infrastructure spending by the public and private sectors which is expected to benefit the Engineering and Construction market. However, inflation and the Russia-Ukraine conflict are acting as headwinds to the industry's growth. The rising inflation rate would increase the cost of raw materials which is not ideal, especially for this industry, as the cost of raw materials accounts for up to 60% of the total cost of construction. This increased cost is expected to cause delays in projects which could result in huge losses for both engineering & construction companies and their clients. The tensions between Russia and Ukraine have made procurement of raw materials difficult, because of persistent supply chain issues. Nevertheless, the development of advanced technology and rising infrastructure spending could provide growth opportunities for this industry in the future.
Posted by Dean Durbin.