Constructors are quietly confident about the industry’s future, but risk factors that threaten productivity remain front-of-mind.
KPMG has released its latest Global Construction Survey, which presents insights from hundreds of construction industry leaders from across the world.
Here are five of the top findings for businesses and engineers, plus an Australian construction expert’s take on local industry growth potential.
At a glance
- There is a high level of confidence among construction executives about the future of the industry – as high as 71 per cent.
- The sectors expected to grow the most across the coming year include water / utilities and green power generation.
- Of the executives surveyed, 75 per cent said they were equally or more risk-averse than they were 12 months ago.
1. Efficiency is a strategic priority
Those surveyed included construction industry leaders from across North America, Europe, Asia and the Australia-Pacific.
Of those surveyed, 75 per cent consider operational efficiency and profitability as strategically important to their organisation over the next 12 months.
2. Optimism among leaders has increased
In the two years to 2025, the percentage of construction leaders who are optimistic about the future of the industry increased from 66 per cent to 71 per cent.
But optimism is not matched by risk appetite, with three out of four respondents reporting greater risk aversion.
3. Energy projects are in highest demand
The report reveals an overall sentiment among constructors that the coming 12-24 months will see growth across key areas of construction demand, in particular the water and green energy industries.
4. Supply chain risks are a concern
At the same time as the increased confidence felt by construction leaders, there is also caution. Some of the dominant risk themes relate to materials and the supply chain.
- 90% of respondents said clients are demanding more sustainable options
- 1 in 3 rank the cost of materials and equipment, and financing constraints as among their biggest challenges
- 3 in 4 believe supply chain risks are elevated and compliance burdens have intensified
5. A digital gap is holding back innovation
The KPMG report reveals a gap in the implementation of AI and automation in the industry, with AI and automation not yet being used extensively by constructors.
What does this mean for Australia?
Against a global backdrop of general optimism tempered with risk aversion, Australian constructors have an opportunity before them, according to Peter Colacino, CEO of the Australian Constructors Association.
“It’s true that the peak of urban civil infrastructure investment is now in the rear-view mirror,” Colacino told create. “The industry is coming off the back of projects such as the poles and wires lease and Victoria’s Big Build, where we’ve seen considerable urban infrastructure spend.
“And there was a large focus on uplifting thinking in the resilience space about seven to nine years ago, which helped advantage the country in its response to COVID.”
But passing the peak now requires a changing focus.
“We now have a growing investment in defence, the building industry and our resource sector,” Colacino said. “So, rather than a decline in the pipeline, what we have is a shifting of priorities. We’re also seeing a move from very big projects to ongoing programs of work where there is a longer view of a project’s lifetime.
“Whether you look at growing investment in housing or the renewal of existing assets – such as the $2.1 billion committed in the NSW budget to the maintenance of the Sydney Trains network – there’s been a shift in speed.”
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Looking ahead to the 2026-27 financial year, Colacino sees increasing opportunities for Australian engineering, particularly in jurisdictions other than Victoria and NSW.
“In my eyes, there are a couple of really big milestones happening,” he explained. “We have the National Construction Strategy approved by the Federal Cabinet that’s about to be released, which talks about substantive reforms around modern methods of construction and new technology.
“We have the National Construction Industry Forum and its work around industrial relations. Then there are the commitments to significant programs of work, such as high-speed rail and the 2032 Olympics and Paralympics.
“So while some people are talking with some pessimism about the industry, I see an incredible amount of optimism that’s associated with some of these big programs and reforms.”
