After Five Bleak Years, Prospects for the Global Engineering, Construction, and Services Industry Are Brightening; Focusing on Margins, Efficiency, Cost Control, and Synergies Will Be Critical, Says a New Report From BCG
LOS ANGELES, CA--(Marketwired - Aug 21, 2014) - Six years after financial crisis rocked the global economy, the engineering, construction, and services (ECS) industry is operating in a world of tightening margins, intensifying competition, and continuing pressure from the capital markets to create value. The next five years, however, look brighter, according to a new report by The Boston Consulting Group (BCG). The report, Value Creation in ECS 2013: Growing and Thriving in Challenging Times, is being released today.
According to BCG's analysis of value creation by 60 global ECS companies, the industry can expect to see growth in the coming years, especially in mature markets that have encountered strong headwinds since 2008. The companies that benefit the most from reaccelerating growth -- and those most rewarded by shareholders -- will be those that can maintain healthy profit margins, especially in the developing world. To succeed, companies will require careful management of costs and capital, superior processes, and balanced portfolios that enable them to apply the right management focus, investments, and discipline to the businesses in which they can truly win.
"In the coming years, companies will have to focus on execution excellence and bottom-line margins," said Jeff Hill, a BCG partner and a coauthor of the report. "The ECS leaders will be strategic about procurement, highly effective in their operations, and extremely productive, streamlining and right-sizing their organizations to achieve maximum effectiveness with minimal waste."
The Six Imperatives of Top Performance
The new report identifies six imperatives ECS companies must follow if they aspire to deliver outstanding returns to shareholders.
A copy of the report can be downloaded at www.bcgperspectives.com.
To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com.
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Eric Gregoire
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Tel +1 617 850 3783
Fax +1 617 850 3701
gregoire.eric@bcg.com