2022 Philippines Construction and Global Outlook

Even though the recession of 2020 was the shortest on record, its impact continues to be felt across both the broader economy of the Asia, the Philippines and United States as well as the Engineering & Philippines Construction industry.

We are entering the second year of the global pandemic recovery in 2022, although the highly contagious Omicron variant is lurking in the horizon, the mining, construction, contracting, machinery and engineering industry will become a very important component of the government’s growth strategy. Investments in public safety, health care, and other public infrastructure through the Infrastructure Investment and Jobs Act (IIJA) will likely benefit the Asian Engineering Firms & Philippines Construction sector and spur recovery in the non-residential sector. Meanwhile, the residential sector will remain strong and will display a similar level of activity to what it exhibited in 2021.

With the construction industry preparing to transition to connected construction capabilities, it has been making increasing investments in digital technologies, including through mergers and acquisitions (M&A). Asian Engineering Firms & Philippines Construction companies can use such technologies to improve internal operational efficiency, minimize spending, and increase margins, all while supporting climate change, smart cities, and urban air mobility initiatives.

A new year of opportunities awaits the engineering and construction industry in 2022, and Deloitte’s annual outlook identifies five key themes that will likely dominate the sector.

The first one is industry growth. Numerous variables have positioned the sector for significant development despite obstacles. For example, in 2022, both the residential and commercial categories are likely to provide significant prospects for Asian Engineering Firms & Philippines Construction companies, in contrast to 2021, when the residential and non-residential segments expanded at varying rates.

The second is industry profitability and performance, which are likely to be impacted by supply chain disruption and sourcing issues.

The third is connected construction, which enables the sector to tap into new revenue sources. As was the case last year, CIOs’ growth agendas will likely prioritize connected capabilities as they seek to improve their capacity to make data-driven choices, better manage costs and schedule variations, and assure timely project delivery across different locations.

The fourth is mergers and acquisitions. As we enter 2022, the sector may witness another robust year in terms of conventional mergers and acquisitions as well as ecosystems and public-private partnerships.

Finally, the fifth is talent changes. As the labor environment advances, businesses continue to face labor shortages.