The engineering and construction industry faced many challenges as the year’s progress. There are developments in many critical areas. However, there are also a lot of difficulties brought about by the pandemic. Things needed to adapt quickly, and now some visible changes are impacting the industry’s current environment.


1. Competition Is Starting to Heat up Again

The vaccine is now easing up many sectors as it stifles the spread of the virus. There are still some restrictions, and things are starting slow, but it’s clear that things are heating up again. The big players are now beginning to flex their muscles, adding a much-needed spirit to the current climate.

E&C firms increased their investments, project experience, and competence in Korea, India, and China,  as their respective countries have grown. As a result, they’re prepared to be strong adversaries in various corners of the globe. Many of these businesses are now exploring new projects in other countries.


2. Market Consolidation 

There are many uncertainties about the current market climate. Investors are still wary because there is still no assurance of things going back to normal soon. However, some do look forward to market consolidation and will begin to increase activity. With the current rate of recovery, the expectations are on a positive note.

They predict this will happen because of the detrimental impact that the reduction in M & M&A has had on smaller businesses, which have already taken steps to execute lean operations. For several years, they will likewise be unable to benefit from the oil prices, which have already stabilized.

Secondly, while the M&A slowdown has been beneficial to larger E&C companies, they will expect to continue their growth and demonstrate their value to their stakeholders and shareholders. In flat markets, they view consolidation as a beneficial move; therefore, larger E&C enterprises may consider gaining a competitive advantage and expanding into new regions and markets.


3. Contracts

Many businesses are beginning to adopt lump-sum, turnkey (LSTK) contracts, in which engineering and construction firms pay a single fee and guarantee turnkey services. It means that commercial and public-sector businesses and organizations have a more accurate estimate of project costs. Clients might request LSTK contracts when bids become more competitive. Regrettably, not all E&C companies have experience with LSTK contracts.

Public-private partnerships (PPPs) are also on the rise, owing to a shortage of financial resources for public institutions to fund critical infrastructure changes. As a result, E&C enterprises must invest in the project to participate in the bidding process. In the United States, this growing trend is still in its early stages but anticipates growth in PPP initiatives.

Finally, there is now a new project approach in which prospective clients expect more project management control. As a result, E&C firms cannot subsidize less profitable operating sectors with earnings from more profitable ones.


4. Upgrading to Digital

There is pressure to accelerate digital investments because the E&C industry lags behind other digital strategy and maturity sectors. However, it is also critical for E&C firms to guarantee that these investments provide value and a return on investment. One strategy is for E&C companies to identify ecosystem partners to collaborate to enable linked construction.

This ecosystem model has the potential to help companies adjust to changing market realities and respond more quickly to disruptions.


5. Engineering Is Changing

Engineers used to be entirely responsible for the projects on which they worked. Engineers have had to work on interdisciplinary teams with geographically separated members and in different time zones as projects and systems have become more intricate.

As a result, they must be comfortable using collaborative tools, working in a virtual environment, and remotely assessing design and construction.

Often, these engineers have acclimated towards this new method of working out of necessity, but providing regular remote working tips and techniques and arranging more common design reviews can assist your team in adjusting to the shifting landscape.

Engineering firms and business owners who have been early adopters of these technologies are experiencing better results while cutting costs, boosting safety, and increasing their return on investment.


6. Focus On Sustainability

The engineering sector responds to the problem by developing new materials and figuring out how to do things in a more ecologically responsible way. Green rooftops and green lanes, for example, are composed of permeable concrete created from recycled materials, allowing runoff to soak into the ground. Other novel materials, such as biometric concrete or bio concrete (concrete with microbes mixed in it), are also interested in sustainability.

Water activates the bacteria in this bio concrete, which forms calcite, a limestone component that completely plugs the fracture and works as a self-healing concrete. Imagine no more potholes, less sidewalk maintenance, and longer-lasting bridges. Engineers are also experimenting with sidewalks that produce electricity based on foot traffic pressure, among other things.

Just a quick tip, if you find it difficult to gain entry to some utility areas, especially on the roof, consider installing a heavy-duty access door. Not only will it give you a safe way to access the site, but you will also provide a convenient and safe entry point for your maintenance crew. It also improves your LEED rating, which is a critical criterion for sustainable structures.


7. Better Adaptable Systems

Climate change has necessitated the use of resilient or redundant systems in addition to a focus on sustainability. Severe weather events are becoming more common due to climate change, increasing the danger of floods and wind damage.

Many supply chains have broken down in the last year, and people today recognize the importance of having a backup plan in place, including systems that can failover to alternate power and continue to function in the case of a catastrophic weather phenomenon.




The current E&C industry is resistant to the many challenges that stifle its progress. As it evolves to a better version of itself, it will be fun to see what lies ahead after this struggle is over. If you want to have more updates and advice, consider contacting a professional who can guarantee a piece of factual information for you.