Top performing construction sectors revealed
23 July 2021
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The top three performing construction sectors so far in 2021 are data centres, transport, and industrial, manufacturing and distribution, according to Consultant Turner & Townsend’s International Construction Market Survey 2021.
The top performing sector across all participating markets is data centres, driven by the growth in technology and digitalisation. Many of the large technology giants are investing billions of dollars in new data centres.
This is the first year that data centres has made it into the top five performing sectors, moving up from sixth position in 2020.
The second highest performing sector is transport (roads, rail and ports), which was in the top position in 2020.
Globally, infrastructure investment has been a key focus for government stimulus in the recovery from the Covid-19 downturn. This is expected to continue over 2021/22 to support economic activity.
Moving from sixth to third on the list is industrial, manufacturing and distribution, which has been driven by the rapid growth in e-commerce that has been fast-tracked by the pandemic. The retail landscape is changing rapidly, and this is driving a surge of investment into new technologies and distribution facilities across the world to meet the rapidly changing needs and demands of consumers.
The survey also asked what the biggest challenges are for construction. Unsurprisingly, Covid-19 was listed as number one, with many regions still seeing considerable case numbers and heavy restrictions still being enforced.
Labour shortages are ranked as the second biggest challenge and Government red tape, bureaucracy, and delayed approvals is number three. However, one of the most notable changes in this year’s survey is the growing problem of rising construction costs, which has moved from twelfth to sixth position since 2020.
This has been influenced by supply bottlenecks and constraints being experienced on a global scale, which has also kept excessive lead times as one of the top five challenges in 2021.
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