Construction Performance Index Survey
Preliminary Results

Take a look at the complimentary insights

The Construction Performance Index is a monthly, high level look at the performance and structural changes of the global construction sector.

Results are a snapshot of the mood of the entire industry, tracing the impact of the COVID-19 pandemic and subsequent economic recovery efforts, providing business intelligence that is critical to effective decision making.

The report investigates the complete spectrum of the construction industry with a focus on the GCC, Middle East and Africa, taking in the views of manufacturers and distributors along with contractors, engineers, architects and consultants, through the eyes of their senior leadership.

The insights below are available for free. For more in-depth information access the full report for $49 only.

OVERALL SATISFACTION

Satisfaction with current company's performance

The April report shows a decline of the overall satisfaction with the current company performance compared to views recorded eight months ago in the Voice of the Industry Report.

Respondents who are “not at all satisfied” have doubled, rising from 4% to 8%, while those who are “not very satisfied” also rose slightly, climbing from 14% to 17%.

PERFORMANCE AND EXPECTATIONS

Market performance and expectations for the future

Just under half of those surveyed (48%) recorded year-on-year revenues contracting in the first quarter of 2020. This was most noticeable in March, when more than 60% of those interviewed saw turnover decline, when compared to the previous month. For 38% of respondents this drop was greater than 15%.

Expectations for April revenues were sharply worse. Of those surveyed, 64% expect to see a further reduction month-on-month. Just 16% were forecasting an increase in revenues.

As we move into the second quarter of 2020, constrained revenues are expected to continue. A majority of respondents (61%) believe the second quarter of the year will end with a reduction of revenues compared to the same period last year. Conversely, 23% expect growth. Those who expect stability were in the minority.

Get access to the full analytics

Don't forget the complete analysis is available to purchase for just $49.


IMPACT OF COVID-19

Aspects affecting the business nowadays

 

 

 

 

Furthermore, the impact of the COVID-19 pandemic has already had significant effects on many aspects of the construction industry. People are at the forefront of the impact with redundancies (12%), pay cuts (26%), enforced leave both paid (22%) and unpaid (18%) - all measures deployed by organisations whose revenues have been hit.

As a consequence of the COVID-19 pandemic, normal business operations have been constrained, with the single biggest contributing factor being government imposed restrictions.

IMPACT OF COVID-19 ON SUPPLY CHAINS

There have also been clear supply chain disruptions contributing to price volatility, as travel and transport restrictions reduce the movement of people and goods.

Some 73% of respondents believe their supply chain has already been affected. An additional 18% have not been affected yet, but already plan to revise their supply chain in order to mitigate potential risks in the future. 81% of respondents also plan to look for more locally produced products.

IMPACT OF COVID-19 ON SMART WORKING

How the company has supported smart working

 

 

 

Also, Productivity has been negatively affected by the shift to remote work, according to 52% of respondents. Just 15% indicate it has improved.

A troubled transition to remote work could be due to the fact that three in every four companies did not allow remote working before the onset of the pandemic emergency.

Nearly a quarter (24%) of all companies surveyed don’t have smart working solutions implemented, or cannot implement them for their specific activity.

An optimistic 58% of respondents agree that “looking at the future, this crisis has changed the way the company works for the better”. Only 21% claim it has changed their working practices for the worse.

Conclusion

Our Construction Performance Index offers a unique insight into the pressures being felt throughout the global construction industry.

The impact of the COVID-19 pandemic on construction is already being felt by the people who make up the industry. The true financial impact is yet to be fully measured.

Thanks to a survey of unrivalled reach we have been able to uncover what the industry’s leaders think now, their expectations for the future, and how they are reacting to these new challenges.

We are grateful to everyone who took part and we thank them for their time and their viewpoints.

As we revisit this survey each month, we will track the progress of the industry, as it returns to full capacity, works in new ways, and maps out a plan for recovery.

About the Construction Performance Index Survey

The monthly survey was returned by 2,653 respondents, with all data collected between 23-30 April.

Data was sourced globally, with the Middle East and Africa most strongly represented.

Service providers, contractors, manufacturers and technology providers make up the majority of respondent business types (74%). 72% of individual respondents sit at director level or above.

Companies of all sizes are well represented.