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1、Familiar challenges,new approaches K 2023Global Construction Survey 2023 India edition 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a pr

2、ivate English company limited by guarantee.All rights reserved.2 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company

3、limited by guarantee.All rights reserved.3The Indian construction industry is at a major inflection with large demand-side forces created through multiple government incentives for new infrastructure creation,manufacturing capacity addition and ambitious private sector growth plans involving fresh c

4、apital expenditure programmes and projects.The infusion of an enhanced ESG aware agenda,digital and technological innovations,and a renewed desire to complete projects on time and at cost despite perennial project performance challenges,driven by the significant optimism demonstrated by the survey r

5、espondents are cumulatively scripting a new construction landscape for India.We are excited to launch the KPMG Global Construction Survey 2023-India edition,the first of its kind for our India-region and international readers.Built on the back of the KPMG Global Construction Survey 2023 spanning 267

6、 construction industry leaders,the India edition extracts the views and insights of 119 India-based primary survey respondents fulfilling leadership roles in project owner firms and engineering&construction firms,from both the public and private sectors.The survey covers important topics relating to

7、 our industry growth opportunities and sentiment,performance and resilience,risk management,ESG,work-force safety,wellbeing and motivation,digital technologies and innovations including modular and offsite construction methods.The survey findings are complemented by insights and points-of-view from

8、KPMG experts.We also have the privilege of highlighted industry point-of-views from industry leaders representing the full stakeholder spectrum of project owners,engineering and contracting(E&C)firms,and the government.Each section of this report concludes with critical takeaways and proven leading

9、practices adopted by successful firms in India.The components can collectively guide our survey respondents,readers and our wider construction industry community to achieve success with their capital programmes and projects.We have also provided an intelligent data analysis tool to enable our reader

10、s to conduct self-assessments and benchmark practices against Indian and global survey datasets,peer group comparisons,and gain insights to protect against risks and enhance performance.The Indian construction sector exhibits a positive outlook with a resounding 84 per cent of respondents feeling op

11、timistic on the future direction of the construction market.The industry continues to face headwinds from a volatile implementation environment-labour shortage,low productivities,supply chain disruptions,regulatory hurdles and challenging land acquisition scenarios.Regardless,our respondents have de

12、monstrated new strategies and mitigation methods to become more resilient,remain competitive and ensure continued growth.ESG presents both opportunities and risks.On the positive side,the shift to a low-carbon,biodiverse,circular world can drive infrastructure and construction spend and bring compet

13、itive advantage,improved ROI for forward-thinking and purposeful businesses,who should be ahead of the queue for both capital and new talent.However,ESG also brings rising scrutiny and compliance requirements,as well as pressure to reduce embodied and operational carbon footprint,waste and pollution

14、 which could be costly and presents significant and multi-dimensional obstacles.FOREWORD 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a

15、private English company limited by guarantee.All rights reserved.4ABCDEFThe technology dilemma persists,as both project owners and,particularly,E&C firms ponder where to invest and how to find the substantial sums needed to become digital leaders.Some of the key breakthroughslike modular/offsite man

16、ufacturingare still relatively low-tech and,if not widespread,are definitely gaining momentum.Proven digital technologies with demonstrated higher performance and return on investment include integrated project management information systems,building information modelling(BIM),data analytics,machine

17、 engineering and design,modular/off-site manufacturing,mobile platforms,drones and digital twins.We thank all our survey respondents and industry leaders for their active interview participation and for sharing invaluable information for the collective betterment of our industry.We hope this publica

18、tion reflects the industrys optimism we gauged in our interactions.Suneel Vora(PMP)Partner,Business Consulting and Transformation Major Projects Advisory and Industry 4.0,KPMG in India 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KP

19、MG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.5ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organi

20、zation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.6Survey at a Glanceand 29(24%)Engineering&construction(E&C)firms Creating Profitable Growth80%feel infrastructure stimuli will have a significant to modera

21、te positive impact on the industry35%feel the planned revenue growth/capital expenditure will exceed 20 per cent over the next 12 months84%respondents are optimistic about the direction of the construction market 72%confirmed the most important response to current challenges is in enhancing the rigo

22、ur of planning activities to increase confidence around project scope,schedule,quantities52%feel clearly defined and standardised project risk management processes&controls is important39%have confirmed at least 20 per cent time/cost overruns on their projectsRising influence of ESG90%Favour decarbo

23、nisation practices such as energy efficiency,construction waste reduction,more efficient use of sustainable and local materials,and use of renewable energy86%consider development of improved and innovative training programmes are important to attract next generation workforce62%feel change in behavi

24、our,leadership and culture will drive improved safety over the next 5 years60%respondents envision the benefits of ESG and are aggressively pursuing its maturity and improvement41%identify embedded ESG principles with reputational improvementsIndia119 India respondents90(76%)Infrastructure/Project o

25、wner firms Insights from our India respondents(1/2)ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited

26、 by guarantee.All rights reserved.7Accelerating digital and technological innovations 88%respondents rate integrated project management information system(PMIS),prefabricated technologies and data analyticsas highly important84%rate building information modelling(BIM)as an important differentiating

27、technology50%saw at least 10 per cent reduced time/cost or avoided overruns by adopting BIM and modular/off-site manufacturing44%have adopted integrated PMIS and basic data analytics on all their projects27%have adopted BIM on all their projects37%use modular and off-sitemanufacturing on at least20

28、per cent of their projectsIntegrated Integrated PMIS:PMIS:73%Advanced data Advanced data analytics:analytics:38%BIM:BIM:Modular/Modular/offoff-site manufacturing:site manufacturing:29%32%Survey at a GlanceInsights from our India respondents(2/2)The proportion of respondents that rate the following t

29、echnologies with potential to deliver the greatest overall ROI for their projects ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a

30、private English company limited by guarantee.All rights reserved.Table of Contents 8ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,

31、a private English company limited by guarantee.All rights reserved.9A.A.Creating profitable Creating profitable growth growth 10B.B.The rising The rising influence of ESGinfluence of ESG24C.C.Accelerating digital Accelerating digital and technological and technological innovations innovations 44E.E.

32、Our authors and Our authors and contributors contributors 64F.F.KPMGs Major Projects KPMGs Major Projects Advisory consulting Advisory consulting business in India business in India 66D.D.About the survey and About the survey and benchmarking toolbenchmarking tool58ABCDEF 2023 KPMG Assurance and Con

33、sulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Creating profitable growthA10ABCDEFIndias construct

34、ion market has witnessed a significant surge fuelled by the post pandemic recovery and extensive infrastructure development initiatives undertaken by the government.National Infrastructure Pipeline(NIP)with a projected infrastructure investment of USD1.4 Tn1covering approximately 9000 nos2.infrastru

35、cture projects and the National Monetisation Pipeline(NMP)with a potential of USD70 Bn of asset creation through monetisation during FY20-25 have provided the much-needed impetus for stepping up infrastructure investment.The Make in India program,Atmanirbhar Bharat program and the Production Linked

36、Incentive(PLI)schemes aim to invigorate new capital investments in industrial and manufacturing sectors in the country.More recently,a USD2.5 Bn National Bank of Financing Infrastructure and Development(NaBFID)has been created by the Government of India,to fund infrastructure projects.100%foreign di

37、rect investment under the automatic route is now allowed for most of the infrastructure subsectors.The construction sector already contributes a significant 8%to the nations GDP.The size of this construction market is expected to grow rapidly given this demand at a compounded annual growth rate(CAGR

38、)of 17.26%during the 2022-27 forecast period.3KPMGs Global Construction Survey 2023 India Edition finds this sentiment quantified with a significant proportion of the respondents optimistic about the direction of the construction market.Overall,the Indian construction market exhibits a positive outl

39、ook,with 84 per cent of respondents feeling either very optimistic or somewhat optimistic,compared to 66 per cent for the global market response.Approximately 92 per cent of Indian project owner organisations express very optimistic or somewhat optimistic views,compared to 76 per cent of their globa

40、l peers.On the other hand,about two-third of E&C firms in India are optimistic about the direction of the future Indian construction market,compared to half in the global scenario.E&C firms while benefiting from the market stimulus are more cautious when compared with their owner counterparts.We exp

41、lore the reasons below.2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.E

42、xhibit 1:Which of the following statements best describes the direction of the construction market?Exhibit 1:Which of the following statements best describes the direction of the construction market?A climate of growing optimism 46%34%43%46%28%41%6%34%13%3%3%3%1%0%20%40%60%80%100%Project or Infrastr

43、ucture Owner OrganisationEngineering/Construction FirmTotalVery optimisticSomewhat optimisticNeutralSomewhat pessimisticVery pessimistic1.Published by Invest India,June 08,20232.Published in press release page,Press information bureau,January 31,20233.India Infrastructure Construction Industry Repor

44、t 2023,Published by Research and Markets,April 26,202311ABCDEFDespite being one of the fastest-growing sectors that contributes significantly(second largest economic activity after agriculture)to the countrys economic growth,the Indian construction sector continues to face a number of challenges,nam

45、ely,supply chain disruptions,escalating energy costs,materials and labour costs,and shortages of skilled workers.However,there is also a sense of anticipation and enthusiasm regarding the potential government funding,investments,and incentives for significant infrastructure projects that is reflecte

46、d by response where more than 41 per cent of the survey participants feel this funding will have a significant impact and a further 39 per cent expect a moderate impact.2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organi

47、zation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 2:What impact will the governments funding,investment and/or stimulus of largeExhibit 2:What impact will the governments funding,investment and/or

48、stimulus of large-scale construction have on scale construction have on your organisation in the next 12 months?your organisation in the next 12 months?1238%52%41%40%38%39%23%40%20%0%20%40%60%80%100%Project or Infrastructure Owner OrganisationEngineering/Construction FirmTotalSignificant impactModer

49、ate impactNo ImpactN=1199029ABCDEFThe optimistic and buoyant mood further reflects into the planned revenue growth wherein almost 7 of 10 respondents(both project owner and E&C firms)expect revenue growth to be at least greater than 10 per cent,and just 5 per cent of E&C firms and 6 per cent of proj

50、ect owner firms predicting zero or negative growth.As expected,E&C firms remain more cautious than project owners,given attendant project execution challenges and with limited visibility into owners robust capital plans and expenditure outlays.2023 KPMG Assurance and Consulting Services LLP,an India

51、n Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 3:For your organisation over the next 12 months,what is the planned reve

52、nue growth(For E&C firms)/Exhibit 3:For your organisation over the next 12 months,what is the planned revenue growth(For E&C firms)/planned capital expenditure(for project/infrastructure owner firms)?planned capital expenditure(for project/infrastructure owner firms)?23%45%18%9%5%0%0%0%0%39%36%11%9%

53、2%0%2%0%2%0%5%10%15%20%25%30%35%40%45%50%Increase bymore than 20%Increase by 11-20%Increase by 6-10%Increase by 1-5%No growthexpected(0%)Decrease by 1-5%Decrease by 6-10%Decrease by 11-20%Decrease bymore than 20%Engineering/Construction FirmProject or Infrastructure Owner Organisation13ABCDEFThe aft

54、ereffects of COVID-19 are freshly evident with 51%of the respondents mentioning that their projects have experienced a schedule delay or cost impact of more than 20%due to COVID-19.The industry continues to struggle with poor project performancewith 39 per cent(global value 37 per cent)of respondent

55、s reporting that they have missed the budget and/or schedule performance targets by over 20 per cent,over the past year due to lack of effective risk management.2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization o

56、f independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 4:What percentage of your projects have experienced a schedule delay or cost impact attributable to Exhibit 4:What percentage of your projects have experie

57、nced a schedule delay or cost impact attributable to COVIDCOVID-19?19?Performance challenges persist3%3%7%10%8%12%10%12%17%21%18%54%41%51%7%17%9%0%20%40%60%80%100%Project or Infrastructure Owner OrganizationEngineering/Construction FirmTotal0%1-5%6-10%11-20%More than 20%Dont know/not sure14Exhibit 5

58、:Over the past 12 months,have any of your capital projects significantly missed budget and/or schedule Exhibit 5:Over the past 12 months,have any of your capital projects significantly missed budget and/or schedule performance targets(20%or more)due to the lack of effective risk management?performan

59、ce targets(20%or more)due to the lack of effective risk management?41%34%39%41%45%42%18%21%18%0%20%40%60%80%100%Project or Infrastructure Owner OrganisationEngineering/Construction FirmTotalYesNoDont know/not sure 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnershi

60、p and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member fi

61、rm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Despite the construction sector finding itself facing perennial challenges of poor overall project performance,low labour produ

62、ctivity,supply chain irregularities and fragmented competition,cumulatively leading to higher capital costs and poorer returns,89 per cent of our respondents describe the level of market challenges in next 12 months as Normal business cycle and global challenges and Difficult but manageable.This pos

63、itive sentiment emanates from the strong industry stimulus and market demand side fundamentals,rating the India region respondents evenly with their global peers.15Exhibit 6:From your organisations perspective,which of the following best describes the level of market challenges Exhibit 6:From your o

64、rganisations perspective,which of the following best describes the level of market challenges in the next 12 months?in the next 12 months?41%32%39%51%52%51%7%12%8%4%0%20%40%60%80%100%Project or Infrastructure Owner OrganisationEngineering/Construction FirmTotalNormal business cycle and global challe

65、ngesDifficult but manageableUnlike anything we have seen beforeNot sureN=1199029ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a pr

66、ivate English company limited by guarantee.All rights reserved.16In response to the high volatility caused by global disruptive events,coupled with perennial poor productivity and lack of effective risk management prevalent in the Indian construction sector,both project owner firms and E&C firms are

67、 prioritising use of commodity hedging strategies to offset increasing material prices as a key risk mitigant.Our survey respondents have also highlighted another significant response formanaging uncertainty,viz.extending the duration of planning activities to increase confidence around project scop

68、e,schedule and quantities.These serve as robust mitigation methods to enhance the much needed certainty around project implementation.Naturally,E&C firms have a relatively higher adaption to the power of hedging and extending the duration of planning activities to increase confidence around project

69、scope,schedule,quantities as levers compared with their project owner counterparts.The overall impending need for shared gains and pains towards driving project performance,labour productivity and supply chain consolidation improvement through proper risk management processes and controls,resilient

70、planning and digital solutions is gradually being recognised and implemented.Building resilience for profitable growth ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliat

71、ed with KPMG International Limited,a private English company limited by guarantee.All rights reserved.17Exhibit 7:How important are each of the following regarding your organisations response to supply chain disruption,Exhibit 7:How important are each of the following regarding your organisations re

72、sponse to supply chain disruption,cost escalation,resource constraints,deglobalization COVIDcost escalation,resource constraints,deglobalization COVID-19 and other disruptive events?19 and other disruptive events?Response from project or infrastructure ownersResponse from project or infrastructure o

73、wnersResponse from engineering/construction firmsResponse from engineering/construction firms90%55%97%55%76%72%7%38%3%34%24%21%3%7%10%7%0%10%20%30%40%50%60%70%80%90%100%Exploring new and innovative approaches forproject execution,including modular construction,design for manufacture and assembly(DFM

74、A)and3D printingImplementing or updating the models for remoteworking and job site travelImproving the estimating accuracy of materials andequipmentIncreasing the use of commodity hedgingstrategies to offset increasing material pricesIncorporating contractual protections for supplychain disruptionsE

75、xtending the duration of planning activities toincrease confidence around project scope,schedule,quantities,etc4-5 More important3 Netural1-2 Less importantTotal(N=90)77%57%83%59%82%71%12%23%11%26%14%17%11%20%6%16%3%12%0%10%20%30%40%50%60%70%80%90%100%Exploring new and innovative approaches forproje

76、ct execution,including modular construction,design for manufacture and assembly(DFMA)and3D printingImplementing or updating the models for remoteworking and job site travelImproving the estimating accuracy of materials andequipmentIncreasing the use of commodity hedgingstrategies to offset increasin

77、g material pricesIncorporating contractual protections for supplychain disruptionsExtending the duration of planning activities toincrease confidence around project scope,schedule,quantities,etc4-5 More important3 Netural1-2 Less importantTotal(N=29)ABCDEF 2023 KPMG Assurance and Consulting Services

78、 LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.View from the industry-Building supply chain resilience To address

79、the pandemic and wider geopolitical disruptions,we enhanced our supply chain with alternate sourcing channels,multiple local vendors and strategic tie-ups.We devised deeper hedging strategies,adopted just-in-time sourcing,and proactively engaged with our clients to address price variations/contractu

80、al indexation of raw material input costs.And,in response to sometimes unreliable supply chains,weve adopted indigenisation,to gain greater independence.In one instance we manufactured complex launching equipment for Indias high-speed railways.In another,during the pandemic,we assembled and operated

81、 the countrys largest tunnel boring machine,creating a world record for the highest monthly tunnelling rate of 456 meters on the iconic Mumbai Coastal Road project.S.N.Subrahmanyan Chief Executive Officer&Managing Director,Larsen&Toubro Limited18“ABCDEF 2023 KPMG Assurance and Consulting Services LL

82、P,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.In addition to the obvious emphasis on company leadership as the most

83、significant determinant in of an organisations ability toaddress disruptive events,our respondents have rated effective risk management and resilience planning,adoption of technology and industry focus as the other three significant attributes that influence an organisations ability to respond effec

84、tively to disruptive events.Exhibit 8:Please rate the following attributes that influence your organisations success or failure in dealing with Exhibit 8:Please rate the following attributes that influence your organisations success or failure in dealing with disruptive events disruptive events 82%6

85、1%94%61%84%76%67%57%76%81%16%27%5%28%13%19%26%28%17%11%3%13%12%3%4%7%15%8%8%0%10%20%30%40%50%60%70%80%90%100%Effective risk management processesand resilience planningOwnership(public or private)Company leadershipWorkplace demographicsAdoption of technologyFocus on innovationSize and scale(revenue)R

86、egions of operationsMaturity of business continuityprogrammeIndustry focus4-5 More important3 Netural1-2 Less important19ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affili

87、ated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.To be effective,availability of real-time project data is important and interpretation of which can be the key difference between success and failure.This makes adoption of technology as a highly

88、responded attribute to explore new and innovative approaches as the organisations preferred response/action(more than 80 per cent)towards such disruptive events.The responses are similar to the previous surveys,which suggests that risk management continues to be considered an important trait among o

89、ther functions.E&C firms and owner firms have reported a single-minded focus on achieving clearly defined and standardised risk management processes and controls.There is a great emphasis on integration between enterprise,portfolio and project risks functions(39 per cent),establishing accurate risk

90、reporting(36 per cent)and creating a clearly defined risk culture(31 per cent)across both project owner and E&C firms.Exhibit 9:Which of the following elements are you focusing on to achieve successful portfolioExhibit 9:Which of the following elements are you focusing on to achieve successful portf

91、olio-wide risk wide risk management?(Multiple selection allowed)management?(Multiple selection allowed)17%20%27%13%44%51%30%19%24%3%14%21%45%10%24%55%55%24%31%0%16%20%31%13%39%52%36%20%26%3%0%10%20%30%40%50%60%Formal riskmanagementtrainingBoard-level riskmanagementcommitteeClearly definedrisk cultur

92、eCommon risktaxonomy and risktolerancesIntegrationbetweenenterprise,portfolio andproject risksfunctionsClearly definedand standardisedproject riskmanagementprocesses andcontrolsAccurate riskreportingDedicated riskmanagementdepartmentQuantitative riskanalysis toolsDont know/notsureProject or Infrastr

93、ucture Owner Organisation(N=90)Engineering/Construction Firm(N=29)Total(N=119)20ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a pr

94、ivate English company limited by guarantee.All rights reserved.Managing risks in construction programmes and projects requires a concerted and dynamic effort across the 3 levels of decision making,viz.enterprise,unit and project levels.As correctly identified in this survey-integration of risk manag

95、ement across these 3 levels,by leveraging a standardised risk management framework is vital for the risk management efforts to be optimal and effective.Mitigation measures require plans and decisions to be seen through their implementation cycles.It follows therefore that incorporating risk manageme

96、nt actions into the construction projects procedures,effective tracking of mitigation effectiveness and residual project risks collectively take centre stage as project execution starts,and prioritised risks and emerging risks are dynamically addressed.Project risks are no more assessed only on the

97、two dimensions of impact and probability.The pandemic and global supply chain disruptions have fortified 2 additional dimensions of risk assessment and prioritisation,namely the inter-connectedness of risks,and their velocity.Modelling the project for its exposure to risk on these 4 dimensions is cr

98、ucial,and made relatively easier by the use of data models and analytics.Integration of predictive analytics with these risk models can enable project leaders to create scenarios allowing for better planning and preparedness to deliver on their major investment programmes and projects.Karun Raj Sing

99、h Sareen Partner,Business Consulting and Transformation Major Projects Advisory,KPMG in India21ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Internation

100、al Limited,a private English company limited by guarantee.All rights reserved.Key takeawaysWe are seeing an unprecedented combination of post-pandemic boom and government stimulus driving the growth of our Indian construction industry.The survey finds a resounding positive sentiment towards the impa

101、ct expected from the government stimulus,and consequently higher proportion of respondents expecting significant capital spend and revenue growth.The perennial project performance challenges,however,continue with a number of delayed and out-of-budget projects.Our industry is at a very critical infle

102、ction point with huge demand side forces creating larger and more complex projects while requirements for timely and within-budget completion,and scrutiny on projects increase.Companies that have demonstrated stronger resilience and implemented robust risk management practices have maintained their

103、leadership position and served as role models for other industry players.Prioritising use of commodity hedging strategiesAllowing more time and rigour for planning to increase accuracy and confidence around project scope,estimated quantities,and schedulesImplementing and updating the models for on-s

104、ite and off-site working and supply management including indigenisation Exploring new methods of construction(e.g.modular,design for manufacture and assembly)Contractual protections for supply chain disruptions Effective risk management and resilience planning Standardised risk management processes

105、and controls,clearly defined risk culture,accurate risk reporting and stronger integration of enterprise,portfolio and project level risks22Leading practices adopted successfully in India ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm

106、 of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.23ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG gl

107、obal organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The rising influence of ESG24BABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm o

108、f the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.ESG becomes a real agenda Our recent paper,Construction in 20234,notes how the industry is regarded as high-carbon,high-waste,and h

109、igh-polluting,with significant use of scarce resources like water and minerals,moderate usage of renewable energy,and limited progress with diversity in what remains a male-dominated sector.At the same time,E&C and owner firms face growing regulatory pressure for sustainability in both its construct

110、ion methods and the infrastructure they produce.Failure to meet such demands could impact access toand push up the cost ofcapital.Awareness around ESG and the impact it can create is growing significantly and we are seeing a slew of ESG oriented goals emerging through regulations and through self-ad

111、option by firms.This places India on a significantly faster track.4.Construction in 2030,February 2023,KPMG25ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KP

112、MG International Limited,a private English company limited by guarantee.All rights reserved.These findings represent views of global respondents and include participants from India.Exhibit 10 Exhibit 10-What is your organisations internal view on ESG?What is your organisations internal view on ESG?2

113、6We see a clear uptick in maturity and strong commitment from the respondents.Nearly 54 per cent of our collective global and Indian respondents fully envision the benefits of ESG and are aggressively pursuing maturity and improvement.The Indian respondents rated this option slightly higher at 60 pe

114、r cent,with owner firms leading at 64 per cent and E&C firms trailing at 45 per cent.37 per cent of our collective global and Indian respondents see some benefit in ESG and are using targeted approach.The Indian respondents rated this option slightly lower at 29 per cent,with E&C firms leading at 38

115、 per cent and owner firms trailing at 26 per cent.Looking back to our Global Construction Survey from 15 years ago,the top drivers for sustainability were to seek a position as innovative or environmentally aware(cited by 56 per cent of respondents),and to increase business opportunities and competi

116、tiveness(29 per cent).As compared to this,in the 2023 survey:More interestingly,nearly 50 per cent of the firms view implementing ESG into capital programmes and projects as a competitive advantage.This is a major shift that needs to be capitalised on by companies seeking to differentiate themselves

117、.2008Positioned in the industry as innovativeand/or environmentally aware company56%56%29%29%Opportunity to partner with additional types of clients54%54%Fully envision the benefits of ESGand are aggressively pursuing maturity and improvement37%37%See somebenefit in ESG and are using targeted approa

118、ch6%6%Skeptical regarding ESG and consider it to be similar toprevious sustainability trends.(Wait and see approach)20233%3%Not in alignment with ESG and only pursuing as requiredABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the K

119、PMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 11 Exhibit 11-What is your organisations internal view on ESG?What is your organisations internal view on ESG?64%45%60%26%38%29%4%

120、10%6%6%3%5%3%1%0%20%40%60%80%100%Project or Infrastructure OwnerOrganisationEngineering/Construction FirmTotalFully envision the benefits of ESG and are aggressively pursuing maturity and improvementSee some benefit in ESG and are using a targeted approachSkeptical regarding ESG and consider it to b

121、e similar to previous sustainability trends;were taking a wait-and-see approachNot in alignment with ESG and only pursuing as requiredOthers27ESG has now become an accepted part of leaders thinking and boardroom conversations and has entered the capital project implementation plans.By analysing the

122、feedback provided by industry leaders in India,it is evident that a majority are actively seeking ways to embrace and harness the value of ESG in their operations.We have gleaned from interviews that many of our respondents believe that focusing on ESG will not only improve their access to capital f

123、or funding projects but also help establish the significance of possessing robust sustainability credentials to meet investor expectations.ABCDEFWorkforce SkillsTechnology and DataEnergy Conservation andUtilisationErgonomicsRisk and OpportunitySustainable sitesLocal Investment and Social EconomicsRe

124、porting and Compliance Ecology and biodiversityMaterials and ResourcesResiliencyDiversity,Equity and InclusionDecarbonisationHuman Rights 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member fi

125、rms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.28Solving the ESG puzzleABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent me

126、mber firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 12Exhibit 12-Which of the following ESG trends are the most important for the success of your organisation?(Multiple Which of the following ESG trends are the most importa

127、nt for the success of your organisation?(Multiple selection allowed)selection allowed)Fascinatingly,project owner firms and E&C firms differ in their views over the most crucial ESG trends.About 47 per cent of the former feel that development of renewable energy facilities is most important,while 45

128、 per cent E&C firms are more concerned with social considerations,such as use of sustainable construction codes and specifications.This discrepancy is understandable as owners are currently being measured by Scope 1 and Scope 2 emissions of their facilities,whereas service providers gain market adva

129、ntage by adhering to requirements and standards.As increasing Scope 3 regulations come into effect globally,owners are likely to ask their contractors to disclose embodied as well as operational carbon,which in turn will direct the industrys focus to total lifetime GHG emissions.Therefore,by integra

130、ting ESG into their business strategies and investments,engineering and construction firms,and project owners,can aim to drive value and ensure long-term business resilience.This approach brings various benefits,improving operational efficiencies,increasing return on investment,building stronger tru

131、st with stakeholders and even attracting the discerning top talent.34%14%13%22%47%28%6%21%23%27%24%19%31%14%17%24%31%21%17%31%28%45%17%14%34%14%14%23%43%26%8%24%24%31%23%18%0%5%10%15%20%25%30%35%40%45%50%GovernmentalrequirementsPressure forcontractors to alignESG goals withclientsInvestor andconsume

132、rpressures for greenfinancingSocial considerations diversity,equity&inclusion (DE&I)Development ofrenewable energyfacilitiesReducing totalgreenhouse gas(GHG)outputEmbodied carbonmeasurementModular/off-siteconstructionGreen procurementinitiativesSustainableconstruction codesand specificationsUptick i

133、n adoptionof sustainablematerials andtechnologyConstruction ofESG/Green-certifiedbuildingsProject or Infrastructure Owner Organization(N=90)Engineering/Construction Firm(N=29)Total(N=119)29ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member fir

134、m of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 13 Exhibit 13-What benefits could your organisation realise by implementing What benefits could your organisation realis

135、e by implementing ESG into your capital projects and programmes?(Multiple selection allowed)ESG into your capital projects and programmes?(Multiple selection allowed)When it comes to embedding ESG principles into capital projects and programmes,the primary benefits identified by respondents were enh

136、ancing reputation(41 per cent),promoting inclusion and ensuring safe job sites(38 per cent),optimising resource consumption(38 per cent)and enhancing project success(36 per cent).While both our respondent groups,E&C firms and owner firms evenly are invested in ESG for improving reputation,we see thi

137、s as a transient and maturing phase,given the similar priorities around ESG by both groups as a lever for enhancing project success although E&C firms lead owner firms on this lever.The other common levers across both groups that drive investment in ESG are to promote inclusion and ensuring safe job

138、 sitesand optimise resource consumption.Specific levers to stay invested in ESG that differ across E&C firms and owner firms are with E&C firms prioritising ESG to also increase reliability,while project owners are relatively more focused on increased resilience,enhanced capital access and enhancing

139、 Return on Investment(RoI)through lifecycle approach.30%28%19%31%32%34%41%23%36%22%29%22%33%34%3%17%28%21%34%21%48%41%21%45%14%45%28%45%31%3%27%28%19%32%29%38%41%23%38%20%33%24%36%34%3%0%10%20%30%40%50%60%Enhanced ROI based on life cycle approachEnhanced circular economyEnhanced productivity of occu

140、pantsCompetitive advantageEnhanced capital accessOptimised resource consumptionReputational improvementEnhanced ESG reportingMore inclusive and safe job sitesImproved resiliencyIncreased reliabilityExplore viable sustainability optionsEnhance project successOperationalise ESG commitmentsFight green

141、washingTotal(N=119)Engineering/Construction Firm(N=29)Project or Infrastructure Owner Organisation(N=90)30ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

142、International Limited,a private English company limited by guarantee.All rights reserved.“Companies are investing in ESG practices to incorporate sustainability into construction projects,including the use of energy-efficient materials,waste recycling,and minimising resource consumption.The health a

143、nd safety of the workers during the construction phase are critical social,legal and moral obligations which the companies have to consider in their ESG program.Additionally,companies recognise that integrating ESG can help attract investors who prioritise social and environmental responsibility in

144、their investment decisions.To accelerate the implementation and integration of ESG,the following approaches would be effective:1.A strong commitment from leadership to foster an ESG culture throughout the organisation2.Foster collaboration with ESG industry leaders and engage stakeholders in collect

145、ive efforts3.Implement innovative approaches and leverage technology tools to measure and optimise embodied carbon right from the building/asset design stage and sustainability solutions to monitor water,air,and soil quality.Utilising digital twins to enhance project sustainability has also seen goo

146、d results4.Transition to electric machinery and equipment to reduce emissions and promote green construction practices5.Encourage vendors and contractors to prioritise the use of low-carbon materials and electric machinery through incentivisation6.Explore greener transportation options like electric

147、 vehicles and utilise waterways to optimise costs and reduce carbon footprint.7.Enhancing the resilience of the projects to the extreme climate events by integrating the mitigation and adaptation measures during the project planning and design stage.”Shivananda ShettyPartner and Practice Lead ESG,KP

148、MG in India31ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Deca

149、rbonisations growing potential Decarbonisation is becoming a central part of construction projects.According to a recent publication by KPMG5,it has been observed that approximately 50-70 per cent of the total embodied carbon emissions occur until the physical completion stage of infrastructure proj

150、ects.Within this,around 85-90 per cent of emissions are generated during the product manufacturing phase,7-10 per cent during transportation,and 3-5 per cent during the construction stage.Both the selection of materials and the processes involved in extraction,manufacturing,transportation,and erecti

151、on significantly contribute to these emissions.As per the 2023 survey findings for India,more than 90 per cent respondents are in favour of implementing practices such as ensuring energy efficiency,efficient use of sustainable and local materials,use of renewable energy and reduction of construction

152、 waste.8 in every 10 respondents believe in construction production processes,life-cycle assessments,embodied carbon reduction,and use of low emission construction machinery as important decarbonisation practices.Exhibit 14 Exhibit 14-Please rate the importance of each of the following decarbonisati

153、on practices in the construction industryPlease rate the importance of each of the following decarbonisation practices in the construction industry5.Embodied Carbon Management for Global Infrastructure,March 2023,KPMG3288%93%90%82%86%95%84%93%97%10%3%9%13%10%5%11%6%3%3%5%3%4%0%10%20%30%40%50%60%70%8

154、0%90%100%Construction production processesConstruction wasteSustainable and local materialsLow emission construction machineryLife-cycle assessmentsEfficient use of materialsEmbodied carbon reductionRenewable energyEnergy efficiency4-5 More important3 Netural1-2 Less importantTotal(N=119)ABCDEF 2023

155、 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.“Addressing ESG has become a

156、n existential issue across industries.In the construction industry also,decarbonisation is on top of the agenda for all stakeholders.We live in a world where every billion-dollars spent on infrastructure development generates one million tons of embodied carbon.The annual capital outlay globally is

157、likely to be three-fold from USD11 trillion to more than USD33 trillion.This would amplify the situation without stricter carbon controls.Conventional measures for energy efficiency and renewable energy alone are inadequate now,and equivalent(or if not less)emphasis is warranted on embodied carbon,l

158、ife cycle assessment,low carbon design and material strategies.Overall,carbon conscious thinking should be at the forefront of every major decision in capital projects,with concerted actions required from the construction ecosystem.”Yash Pratap SinghPartner,Business Consulting and Transformation Maj

159、or Projects Advisory,KPMG in India33ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.A

160、ll rights reserved.Being the largest stainless-steel manufacturer in India,Jindal Stainless is committed to pave the way for the industry to define and execute their ESG goals.Steel is a hard-to-abate sector when it comes to carbon reduction.However,given the global importance of climate change,we h

161、ave developed a thorough roadmap for carbon reduction at both our manufacturing facilities in Hisar,Haryana and Jajpur,Odisha.We have embarked on a mission to achieve Net Zero by 2050,ahead of the governments goal of 2070.We are the first stainless steel company in India to set up a green hydrogen p

162、lant and have already switched to renewable energy alternatives which will also power our new capacity expansion projects.Along with the recently announced 300 MW utility-scale captive wind-solar hybrid project and a ready-to-commission floating solar plant,we also plan to augment rooftop solar capa

163、city at our Hisar unit and put up a new facility at our Jajpur unit.Efforts to increase green cover and include EVs in our transit systems are yielding good results.We achieved a reduction of 2.4 lakh tons CO2e in the last two fiscals(FY22 and FY23)and are ambitious about our goals in the coming yea

164、rs.Moreover,we are focused on providing long lasting and sustainable solutions for the construction and infrastructure industry not just through flat products but long products as well.Since stainless steel offers high strength-to-weight ratio and inherent corrosion resistance while reducing mainten

165、ance requirements and lifecycle costs,it is the inherently better choice for sustainable and green infrastructure that puts less load on the environment.With that vision,we acquired a long products manufacturing facility to add wire rods and rebars to our existing product portfolio.We are also focus

166、ed on reducing embodied carbon from our upcoming expansion projects.With implementation of measures such as use of green cement,reduction in cement and steel quantities by optimising design,use of alternative materials such as GFRP,we are on track to reduce embodied carbon in all our capital expansi

167、on programmes.Abhyuday JindalManaging Director,Jindal Stainless LimitedView from the industry-Switch to renewable energy alternatives34“ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent memb

168、er firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Digital technology drives safetyThe construction sector has made impressive advances in worker safety in the past decades,and the responses to our global survey suggest that compani

169、es continue to prioritise this vital area.For both project owner and E&C firms,the single most crucial factor is the tried-and-trusted behavioural,leadership and cultural change,to create a climate with zero-tolerance towards accidents.Respondentsespecially ownersare keen to increase safety monitori

170、ng and onsite health and wellness testing of workers,to reduce the risk of incidents.In the 2023 survey,we see a strong commitment from the respondents towards new technology and methods to improve workers safety with 64 per cent wanting to focus on increase in the safety monitoring and onsite welln

171、ess of the workmen,and nearly 63 per cent project owners feeling change in behaviour,leadership and culture as the top advancements.Nearly 55 per cent of E&C firms view implementing modular and offsite fabrication as an advantage,for driving safety.Exhibit 15 Exhibit 15-What are the top advancements

172、 that will positively impact worker safety on your projects over the What are the top advancements that will positively impact worker safety on your projects over the next 5 years?(Multiple selection allowed)next 5 years?(Multiple selection allowed)63%64%24%30%20%16%6%36%59%41%17%55%28%24%7%45%62%59

173、%23%36%22%18%6%38%0%10%20%30%40%50%60%70%Behavioral,leadership and cultural changeIncrease safety monitoring and onsite health and wellness testing of fieldpersonnelIncreased use of drones for safety oversight and monitoringIncreased modular and offsite fabrication to reduce on-site workUse of smart

174、 sensors and monitors to notify of high-risk activity or healthconcernsUse of remote operated machines for higher risk workUse of robotics to aid workers in the fieldUse of data&analytics to help predict and prevent incidencesTotal(N=119)Engineering/Construction Firm(N=29)Project or Infrastructure O

175、wner Organisation(N=90)35ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights r

176、eserved.Technology plays a significant role to create safer working spaces,with respondents making greater use of data and analytics(D&A)to predict and prevent,as well as modular/offsite fabrication to reduce potentially dangerous onsite tasks.Our survey results suggest that other innovations are at

177、 an earlier stage,with less frequent use,such as smart sensors and monitors,drones,remote-operated machines,and robotics.The low take-up of such potentially advantageous technologies could be a wake-up call for progressive players to improve their safety records through digitalisation and automation

178、.Mental health is becoming destigmatised in the industry,with many companies taking tangible steps to support workers,including risk assessments that cover both physical and mental health,sharing resources around mental wellbeing,and offering practical help like trained peer support.With focus on wo

179、rker wellbeing,firms should implement IoT-based solutions for monitoring worker health and safety,such as wearable sensors that can detect heat stress or fatigue,and alert workers and managers to take necessary precautions.The use of PPE and worker wellbeing has become high-priority,with some constr

180、uction companies going the extra mile by providing employees with innovative new PPE items that not only help keep them safe,but also enable them to do their jobs more comfortably,such as 3D printed masks and safety footwear that helps revitalise blood flow through the legs and feet and gives the we

181、arer greater energy6.Use of Virtual Reality to promote and impart simulation based innovative trainings to the workforce can give real time experience of various mishaps that could occur during the project construction and operations phase.As one would expect,safety is a crucial pillar of ESG-led pe

182、rformance and continues to be part of all ESG ratings assessments.6.Grant Prior,“Anti-fatigue safety footwear boosts energy,”Construction Enquirer,October 3,201936ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organ

183、ization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.“Construction is one of the most hazardous sectors due to inherent risks such as significant involvement of unskilled/semi-skilled workforce,continuous ch

184、urning of workforce,heavy machinery,hazardous project locations and lack of specific safety awareness.It is high time that the construction sector transforms its approach from being human-dependent to technology-based,for fool-proof safety at the construction sites.Such an approach can include using

185、 digital tools including apps for reporting and training,automation and use of high-end technology such as AI and ML with tools such as drones,smart sensors,integrated cameras for effective monitoring,analytics aiding in prediction,warning and prevention of unsafe acts and conditions.Predictive fore

186、casting and analytical capabilities will support the owners and contractors to shift from manual to real time predictive and proactive management.This would not only help better monitoring and decision making by the leadership team but also would strengthen the training and behavioural safety of the

187、 employees and workers.”Anand Kulkarni Technical Director,Environment Social&Governance,KPMG in India37ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Int

188、ernational Limited,a private English company limited by guarantee.All rights reserved.Attracting the NextGen talentAttracting the best graduates means offering fulfilling careers on the cutting edge of innovation,in purposeful,sustainable organisations,offering varied development paths,flexible work

189、ing conditions and greater work-life balance.More and more employees are looking for companies that prioritise Diversity,Equity and Inclusion(DEI),employee health and wellbeing,community building,and strong governancewhile minimising their environmental impact.As we discuss in Construction in 20307,

190、the sector has a golden opportunity to shed its male-dominated,hard-hat,manual labour image by becoming more technology-and sustainability-oriented.This shift should help persuade graduates that this is an exciting industry to join.Another KPMG paper,“Navigating the tech hiring freeze8,”argues for a

191、 greater focus on workforce planning to determine an organisations talent needs and identify how to satisfy these demands by training and upskilling.And by building a compelling digital workplace experience,E&C firms can enthuse existing workers and attract future stars.Respondents to this years Glo

192、bal Construction Survey consider the development of improved and innovative training programmes as the number one strategy to attract next-generation talent into the sector.The metaverse offers particularly exciting opportunities to onboard,train,and interact.In“Want to win in the metaverse?Think in

193、ternal first9,”KPMG surveyed companies from the technology,media and telecommunications industry and found the top uses of the metaverse were for internal activities such as employee capability development and onboarding,and employee collaboration.Given continued digitalisation,investment in the met

194、averse could be a catalyst for improving the employee experience.7.“Construction in 2030,”February 2023,KPMG,8.Navigating the tech hiring freeze,”January 2023,KPMG9.Want to win in the metaverse?Think internal first,”KPMG38ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liabi

195、lity Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 16 Exhibit 16-How important are each of the following strategies to attract the next ge

196、neration workforce to the How important are each of the following strategies to attract the next generation workforce to the construction industry?construction industry?76%81%86%55%64%64%79%17%16%8%34%28%25%15%8%3%6%10%8%11%6%0%20%40%60%80%100%Work environment improvements(e.g.,opportunities for hyb

197、ridwork)Broader industry technology improvementsDevelopment of improved and innovative training programmesScholarship and apprenticeship programmesPartnering with universities and trade schoolsDiversity and inclusion programmesIndustry outreach and awareness programmes4-5 More important3 Netural1-2

198、Less important39ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.“

199、There has been a revival in demand in the construction industry post pandemic with the market in India being fairly competitive.While the growth outlook for the industry appears strong,attracting and retaining the next generation of workforce has become more challenging than ever.The skill gap acros

200、s the industry has only widened in recent times,with organisations increasingly adopting new technologies,and focusing on digitisation and automation accompanied by the push for sustainable practices such as green building certifications,energy efficiency,and reducing carbon footprints.Organisations

201、 can act now with targeted strategies to address the situation.The focus of HR must shift towards people centricity,analytics,enabling the new ways of working and prioritising a strong employee value proposition.We strongly believe that reskilling and upskilling will be the most effective drivers to

202、 attract and retain talent,and developing improved and innovative training programmes is the way to go.Other critical areas such as industry outreach and awareness programmes,coupled with investing in technology improvements and embracing the new ways of working,will also be key in driving the talen

203、t attraction and retention agenda in the industry.”Vishalli DongriePartner,People and Change,Business Consulting,KPMG in India 40ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firm

204、s affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.41ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated wi

205、th KPMG International Limited,a private English company limited by guarantee.All rights reserved.42Key takeawaysOver the past 15 years,firms have evolved from being environmentally aware to actively funding ESG initiatives and prioritising capital investments with the specific ESG lens.60 per cent o

206、f our Indian respondents fully envision the benefits of ESG and are aggressively pursuing maturity and improvement,and another 29 per cent seeing some benefit in ESG and are using a targeted approach.Our respondents believe that focusing on ESG will not only improve their access to capital for fundi

207、ng projects but also help establish the significance of possessing robust sustainability credentials to meet investor expectations,and attract better talent.Decarbonisation is becoming a central part of construction projects,and respondents listed energy efficiency,reducing construction waste,and mo

208、re efficient use of materials as the most important decarbonisation practices.Construction safety has always reigned as a priority agenda,and driving a behavioural,leadership and cultural change continues to be identified as the top factor to drive safety at our construction sites.Technology is play

209、ing a significant role to create safer working spaces,with respondents making greater use of data and analytics(D&A)to predict and prevent,as well as modular/offsite fabrication to limit potential safety events.Leaders in the industry are also emphasising the use of AI/ML,drones,smart sensors and mo

210、nitors,drones,remote-operated machines,robotic technologies,virtual reality and even 3D printing to create customised protective gear to create safer and more comfortable workplaces.Talent acquisition and retention for our construction industry has faced recurring headwinds vis-vis other competing i

211、ndustry sectors.Respondents have shared successful talent retention and development practices by enhancing the employee value proposition,built on people-centric practices,creating a sense of pride in delivering marquee projects for the nation,reskilling/upskilling,leveraging analytics for customise

212、d employee journeys,innovative training programmes and the frequent recognition of achievements and successes.Industry outreach and awareness programmes,coupled with investing in technology improvements,embracing the new ways of working,ESG and sustainability aware goals will also be key in driving

213、talent attraction,motivation and retention agenda for our industry.ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English

214、 company limited by guarantee.All rights reserved.43Leading practices adopted successfully in India Integrating ESG into business strategies and investment decisions with the aim to drive value and ensure long-term business resilienceEmphasising the firms ESG agenda can lead to attracting investment

215、s and top talent,improving operational efficiencies,increasing return on investment,enhancing safety,inclusion,and building stronger trust with stakeholdersOptimising the embodied carbon at the concept and design stage of the project,and even carbon management during the projects construction can de

216、liver the maximum output towards decarbonisation and ESG goalsLeveraging digital tools and innovative technologies can improve the safety record and create greater reassurances for management,employees and workers Employee value proposition driven initiatives coupled with innovative training and ups

217、killing programs can help enable the skills gap to be bridged as well as attract and retain the talent for our construction industry.ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member

218、firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Accelerating digital and technological innovations 44CABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG globa

219、l organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Digital and technological innovations are crucial transformational participants in the new construction landscape.Construction technology funding r

220、eached a record high of USD2.1 billion10in 2021 in USA and the similar metric for India was a record high of USD104.2 million11.Technology giants are serving as potential collaborators,enabling the industry with exciting innovations and rapid advancements,but also gaining mastery over data,owning pl

221、atforms and attracting top talent.India particularly,enjoys an ecosystem of multiple start-ups,regional players,and entrepreneurs incubated at academic and other funded institutes,adding to the pool of technology innovators benefiting the construction industry.With improved integration of digital an

222、d technological innovations,and multiple other transformational forces shaping the construction industry such as digital,ESG,supply chain evolutions,are we experiencing a veritable start of a construction renaissance?The KPMG 2017 Global Construction Survey took a deep dive into technology and found

223、 an industry embracing building information modelling(BIM),analytics and project management information systems(PMIS),drones,smart sensors,and a few bold innovators exploring 3D printing,machine learning(ML),virtual reality(VR)and robotic process automation(RPA).10.Business Line“Funding for construc

224、tion tech start-ups hits seven-year high”published on 07 July 202111.Construction dive report“Construction technology funding skyrockets to record levels”published on 6 October 202145ABCDEF74%75%88%71%45%50%45%77%40%48%64%56%66%84%71%56%87%88%18%20%11%21%37%35%40%17%35%30%24%29%23%11%20%28%10%9%8%5%

225、1%8%18%14%16%6%24%22%12%15%12%5%8%16%3%3%0%10%20%30%40%50%60%70%80%90%100%Machine engineering and designSmart sensors(tracking people and productivity,security,etc.)Prefabrication solutionsModular buildersAugmentable realityVirtual realityRobotics processes automation/digital labourEquipment trackin

226、g and fleet management3D printingCognitive machine learningDrones(remote monitoring,quantity verification,construction status)Radio frequency identificationDigital twinBuilding Information Modeling(BIM)Mobile platformsArtificial intelligenceData analyticsIntegrated project management information sys

227、tems(PMIS)4-5 More important3 Netural1-2 Less important 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited b

228、y guarantee.All rights reserved.Exhibit 17:Please rate the importance of each of the following technology solutions in capital projectsExhibit 17:Please rate the importance of each of the following technology solutions in capital projectsFast forward to this years survey,over 70 per cent of Indian r

229、espondents rated integrated project management information systems(PMIS),data analytics,building information modelling(BIM),equipment tracking and fleet management,prefabrication solutions,and modular builders as more important.Of this,respondents from E&C firms assigned relatively higher importance

230、 to technology solutions such as data analytics,mobile platforms,building information modelling(BIM),drones,modular builders,and smart sensors.46ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of indepen

231、dent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.When adoption of these digital technologies is assessed across all projects,and this is a critical metric,respondents reported relatively lower numbers.44 per cent of respo

232、ndents stated that basic data analytics and integrated project management information systems are the most widely adopted technologies in construction.Mobile platforms were cited by 28 per cent of respondents,useof drones for remote monitoring,quantity verification,and construction status(28 per cen

233、t).followed by building information modelling(BIM)at 27 per cent.In the Indian market,an exciting development is the growing popularity of modular/off-site manufacturing(33 per cent).E&C firms have significantly higher adoption of technologies such as mobile platforms and building information modell

234、ing(BIM)compared to the owner firms.Conversely,owner firms have significantly higher adoption of visualisation technologies such as virtual and augmented reality,and digital twins.The utilisation of AI,encompassing digital twins,intelligent construction equipment,data and document management,and imp

235、roved safety and communication,has experienced substantial growth globally.The adoption rate has risen to 40 per cent in 2023,a notable increase from 29 per cent in 2021.A similar trend can be observed in the Indian market,with 37 per cent of respondents indicating that they are either currently ado

236、pting or have recently started to adopt AI.33%9%16%6%3%6%28%12%12%27%28%7%19%44%44%47%22%28%27%21%21%49%33%29%42%45%30%42%45%39%20%69%56%67%76%73%24%55%59%31%28%63%39%12%17%0%10%20%30%40%50%60%70%80%90%100%Modular/off-site manufacturingAugmented realityVirtual realityRobotics process automation/digi

237、tal labour3D printingCognitive machine learningDrones(remote monitoring,quantity verification,construction status)Radio frequency identificationDigital twinsBuilding information modelingMobile platformsArtificial intelligenceUse of advanced data analyticsUse of basic data analyticsIntegrated project

238、 management information systems(PMIS)Adopting across all projectsJust started with a few projectsHave not adopted47Exhibit 18:Please rate your level of adoption of each of the following technologiesExhibit 18:Please rate your level of adoption of each of the following technologiesABCDEF 2023 KPMG As

239、surance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.48Innovation and digital are familia

240、r buzzwords in board rooms,offices and construction sites,and some firms have made impressive progress.We have seen robotic dogs that sniff out unsafe incidents and practices at construction sites,capture ongoing construction in three dimensions for close-to-real-time work measurement,and check desi

241、gn alignment vis-vis a 3D model.Then there is the project owner organisation that ordered out all major packages in record time,by collectively bargaining with its service providers,shaving precious months off the implementation schedule.In another example,a prime contractor uses 5D BIM layered with

242、 its custom workflows and lean construction methodology,for a fully integrated concept-to-design-to-delivery approach.Digital technologies serve as one of the largest levers for owners and E&C firms to implement innovative ideas and solve project implementation problems.The key is to use a combinati

243、on of already available and tested technologies.In the rush for instant results that yield a positive,short-term ROI,multiple potential investments in digital and technological innovations are overlooked.A 35 year horizon is realistic when assessing the investment case.And the importance of cultural

244、 barriers in both owner and E&C firms organisations should not be underestimated;a shift in culture is often necessary to drive innovation at business unit,functional and individual levels,creating a virtuous cycle of greater adoption and furthering innovation.As our survey responses demonstrate,est

245、ablished industry players are deploying PMIS,BIM and advanced data analytics,and are making inroads into the use of digital twins,AI,VR/AR,3D printing,RPA.The successful adopters are championing digital adoption and technology innovations from the very top and investing in educating their teams.In a

246、ddition to encouraging digital technology use for project implementation,leaders are also applying these technologies to conduct management reviews for enforced governance,sending a further signal that the organisation is shunning conventional,manual methods and striving for digital and technologica

247、l leadership.”Suneel Vora(PMP)Partner,Business Consulting and Transformation Major Projects Advisory and Industry 4.0,KPMG in IndiaABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member fi

248、rms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Investing in the right technologiesThe industrys mixed record of going over budget and over schedule is something that everyone involved in construction has been striving to overcome for

249、 decades.So,it was fascinating to hear how the various new technologies were contributing to cost and schedule performance improvement or avoiding overruns.Approximately half of our respondents adopting building information modelling(BIM),modular/off-site manufacturing and digital twins saw a signif

250、icant performance improvement of 10 per cent or more throughreduced timelines,costs and overruns.Additionally,the responses demonstrate a positive industry attitude towards adopting artificial intelligence,integrated PMIS,advanced data analytics,and drones.Exhibit 19:For the technologies adopted by

251、your organisation,select a percentage range that best reflects the Exhibit 19:For the technologies adopted by your organisation,select a percentage range that best reflects the performance improvement achieved in reducing cost and schedule(or avoiding overruns)performance improvement achieved in red

252、ucing cost and schedule(or avoiding overruns)4946%50%21%44%20%28%28%37%17%17%8%55%35%41%31%40%15%9%29%14%20%22%8%7%17%23%6%19%23%20%14%23%29%29%14%20%11%16%23%33%50%31%23%19%14%20%18%8%9%18%14%30%6%32%13%100%50%16%15%13%14%14%25%20%8%3%3%14%10%33%16%20%23%3%13%8%4%8%0%10%20%30%40%50%60%70%80%90%100%

253、Digital twinsModular/off-site manufacturingMachine engineering and designArtificial intelligenceAugmented realitVirtual realitySmart sensors(tracking people and productivity,security,etc.)Drones(remote monitoring,quantity verification,construction status)3D printingCognitive machine learningRobotics

254、 process automation/digital laborRadio frequency identificationBuilding information modeling(BIM)Mobile platformsUse of advanced data analyticsUse of basic data analyticsIntegrated project management information systems(PMIS)10%or more7%or more but less than 10%5%or more but less than 7%2%or more bu

255、t less than 5%Greater than 0%but less than 2%ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by gu

256、arantee.All rights reserved.63 per cent respondents from Owner firms reported technologies such as building information modelling(BIM)achieving more than 10 per cent improvement,given their heavy involvement with design agencies during the conceptualisation and design development phases.E&C firms re

257、spondents reporting 10 per cent or more of performance improvement through adopting BIM were relatively lower at 42 per cent.It is important to note that as E&C firms start adopting the fourth and fifth dimension of BIM,namely,management of time and cost respectively,the benefits from BIM technology

258、 are expected to be higher for E&C firms as well and possibly surpass their owner firm peers.There are some owner firms respondents who have reported 10 per cent or more of performance improvement by leveraging robotics and process automation/digital labour,cognitive machine learning and radio frequ

259、ency identification,both being relatively new technologies in the construction industry.This is another area where we see significant potential for the E&C firms to exploit for greater project performance improvement.Integrated project management information systems continue to offer the greatest re

260、turns as reported by both categories of respondents,owner firms and E&C firms.Approximately a third of the respondents reported the use of advanced data analytics and building information modelling(BIM)offering high ROIs.An exciting insight we learnt is around the high return on investment(RoI)enjoy

261、ed through adoption of modular/off-site manufacturing by E&C firms(34 per cent of the respondents)and owner firms(27 per cent of the respondents).Correlating this insight with the performance improvement achieved with the same technology,just under half of our respondents from both categories report

262、ed 10 per cent or more of performance improvement from modular and off-site manufacturing,making this a veritable lever for project performance improvement.50ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organizati

263、on of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 20:Technologies with potential to deliver the greatest overall ROI(multiple selection allowed)Exhibit 20:Technologies with potential to deliver the gre

264、atest overall ROI(multiple selection allowed)2%8%27%10%6%6%3%13%20%4%2%10%4%27%10%38%14%73%0%14%34%7%10%3%0%10%17%0%0%0%3%48%28%38%10%72%2%9%29%9%7%5%3%13%19%3%2%8%4%32%14%38%13%73%0%10%20%30%40%50%60%70%80%Dont know/not sureDigital twinsModular/off-site manufacturingMachine engineering and designAr

265、tificial intelligenceAugmented realityVirtual realitySmart sensors(tracking people and productivity,security,etc.)Drones(remote monitoring,quantity verification,constructionstatus)3D printingCognitive machine learningRobotics process automation/digital laborRadio frequency identificationBuilding inf

266、ormation modeling(BIM)Mobile platformsUse of advanced data analyticsUse of basic data analyticsIntegrated project management information systems(PMIS)Total(N=119)Engineering/Construction Firm(N=29)Project or Infrastructure Owner Organization(N=90)51ABCDEF 2023 KPMG Assurance and Consulting Services

267、LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The modular constructions moment has arrived Modular and off-site ma

268、nufacturing offers multiple benefits by shifting construction processes from the site to the factory floor or even a factory-like environment,positively impacting safety,supply chain and labour management,delivery timelines,costs and risk management,as well as better control on the carbon footprint.

269、This approach utilises standardised designs,resulting in cost reduction,improved quality and safety,and accelerated construction timelines.8 per cent of E&C firms reported employing this approach in over 50 per cent of their projects,and a significant number(61 per cent)of E&C firms respondents repo

270、rted having used modular and off-site manufacturing in 11 per cent to 50 per cent of their projects.It is noteworthy that 35 per cent of respondents anticipate a significant increase in adoption,expecting to incorporate this technology in over half of their projects within the next five years.The se

271、ntiment towards modular off-site manufacturing is overwhelmingly positive,with 96 per cent of respondents expressing a strong desire to leverage its benefits in their projects.Approximately one-third of both owner firms and E&C firms intend to leverage modular and off-site manufacturing in over 50%o

272、f their projects in the next 5 years.Exhibit 21:What percentage of your projects currently leverage,or do you anticipate using modular/offExhibit 21:What percentage of your projects currently leverage,or do you anticipate using modular/off-site site manufacturing in 5 years?manufacturing in 5 years?

273、36%19%31%8%35%16%30%23%42%15%34%21%17%28%15%46%17%33%16%28%8%23%14%26%3%4%8%4%0%20%40%60%80%100%Project or Infrastructure Owner Organization-Using in Next 5 YrsProject or Infrastructure Owner Organisation-Currently LeveragedEngineering/Construction Firm-Using in Next 5 YrsEngineering/Construction Fi

274、rm-Currently LeveragedTotal-Using in Next 5 YrsTotal-Currently LeveragedOver 50%21-50%11-20%1-10%0%52ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Inter

275、national Limited,a private English company limited by guarantee.All rights reserved.“One of the factors limiting modular manufacturing is the current day size and capacity of the existing facilities.While new facilities are emerging,ambitious large scale projects will need dedicated yards,underlying

276、 finance and upfront investment.The survey findings from both owner firms and E&C firms in India provide a strong indicator of the industrial-scale business opportunities offered by modular and off-site manufacturing in the upcoming 5 years.Given the large infrastructure pipeline and the demand for

277、high quality,safe and on-time/on-cost projects,modular construction provides an important solution.As confidence in modular construction gradually rises,and last mile execution improves,we expect these constraints to diminish.By creating greater awareness across multiple industry communities,policie

278、s that promote standardization,mainstreaming of lean techniques like last planner,creating better risk sharing through balanced contracts and with government encouragement,modular construction will receive the much-needed scale making it a game-changer for India.”Puneet NarangPartner,Business Consul

279、ting and Transformation Major Projects Advisory,KPMG in India 53ABCDEFBenefits ofmodularconstructionReduced schedule timeImproved product safety and quality Greater consistency of deliveryLower labour costsControlled costsModular can be used on all types of projects but is particularly well suited t

280、o:Urban midrise multifamilyLow income multifamilyUrban medical centresCommercial officesFactoriesData centres&labs 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPM

281、G International Limited,a private English company limited by guarantee.All rights reserved.54ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International

282、 Limited,a private English company limited by guarantee.All rights reserved.CIDCO is pursuing its vision to elevate Navi Mumbai to global eminence through a multitude of transformative capital projects.These capital projects include worlds largest mass housing project,comprising 125,000+nos.housing

283、units,largest greenfield city development of NAINA(Navi Mumbai Airport Influence Notified Area)with 371 sq.kms,Indias only dual airport system greenfield airport(Navi Mumbai International Airport),Navi Mumbai Metro,Water Supply and Urban transport projects amongst others that collectively are worth

284、more than USD18 billion.Driving timely completion of these projects has been a priority for CIDCO.In addition to strong programme management,CIDCO has adopted innovative financing and construction methods.We have also been able to resolve issues on troubled projects and fast track completion of proj

285、ects at CIDCO.The mass housing project has achieved remarkable milestones under Mission 96,viz.constructing a 12-storey residential tower with 96 tenements in just 96 days using the latest precast technology.Furthermore,the casting of 1415 slabs in a mere 727 days at the Taloja node showcased CIDCOs

286、 exceptional speed of 1.94 slabs per day by leveraging its partner ecosystem effectively.This is the only scheme which has kept the prices under check by providing affordable housing for common citizens.CIDCO has leveraged precast construction technology and digital technologies such as building inf

287、ormation modelling(BIM)to achieve success on multiple capital projects.Being a leader in development of new cities in India,CIDCO appreciates the importance of technology adoption,innovative financing,partner ecosystem development,effective stakeholder engagement,and focus on sustainable green const

288、ruction.Dr.Sanjay Mukherjee Metropolitan Commissioner,Mumbai Metropolitan Region Development Authority(MMRDA)Dr.Sanjay Mukherjee shared his views with KPMG when he was designated as the Vice Chairman&Managing Director,City and Industrial Development Corporation(CIDCO)of Maharashtra(2020-2023)on 31 M

289、ay 2023 View from the industry-CIDCOs transformative capital projects are pioneering excellence in Navi Mumbais urban infrastructure development55“ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of indep

290、endent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Our clients are becoming ever more demanding,which is why we employ multiple digital construction technologies and continue to focus on improved productivity.Greater pre-

291、fabrication,pre-casting,and modular manufacturing improves quality,reduces the risk of error,and speeds up construction,as does mechanisation and automation.By combining prefabricated,pre-finished volumetric construction(PPVC),structural steel construction,modular construction and 3D printing,we hav

292、e managed to reduce typical project durations by an incredible 50 per cent.In one example,we successfully built 96 residential flats in just 96 days,and a seven-story building in less than 45 days.These kinds of timescales would have been unthinkable a few years ago.And thanks to our digital tools a

293、nd systems,we now get the benefit of real-time updates,predictive forecasting and better collaboration between different teams together they enable faster decision-making.Digital twins accelerate development of designs and allow us to customise designs more closely to client needs.Its not just about

294、 construction;digitalisation also enhances operations of our clients assets to reduce operating and maintenance costs,by making them smarter.And 5G is set to bring even higher speed and lower latency.Underpinning much of this is our continued investment in our IT and technology services businesses,w

295、hich we plan to grow multi-fold.We are building our capabilities in high-growth areas such as data centres,cloud,AI,cybersecurity,and blockchain,among others.We have already launched two new digital e-commerce platforms:a B2B marketplace for industrial goods(called L&T SuFin),and an online learning

296、platform for upskilling and vocational training(L&T Edutech).With these kinds of advances,we are confident that our business will be in a strong position to compete in an increasingly digital world.View from the industry-Embracing modularisation and digital technologies56S.N.Subrahmanyan Chief Execu

297、tive Officer&Managing Director,Larsen&Toubro Limited“ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limit

298、ed by guarantee.All rights reserved.57Key takeawaysThe moment for the Indian construction industry to embrace digital technologies is clearly upon us.Projects have suffered delays and budget overruns for decades.Digital and innovative technologies offer the much needed performance boosts that can po

299、ssibly overcome relatively uncontrollable factors enabling projects to achieve schedule and budget expectations.This survey clearly establishes the growing acceptance for the multiple digital and technological innovations basis the highest performance improvement and the return on investment achieve

300、d The benefits of digital and technological innovations and the associated return on investment are best accrued with a transformation-scale exercise spanning business processes,technology,organization,with hands-on change and culture management.Often,establishing a dedicated and structured project

301、management office(PMO)focused on technology implementation is observed to be necessary.With improved enabling technological infrastructure available in India at economical rates such as data management,networks,cloud computing,platform integration,and a flourishing ecosystem of construction technolo

302、gy start-ups and the software giants,our construction industry in India is well-poised to exploit the opportunities offered by digital and technological innovations.Firms are seeking to gain competitive advantages by furthering the adoption of digital technologies and driving performance improvement

303、.Additionally,with more firms adopting digital technologies the wider ecosystem and the industry will also gain collectively.Accelerated adoption will result in the industry transforming itself,from being project-based and fragmented to becoming more consolidated,integrated,predictable and standardi

304、sed.Integrated project management information systems,building information modelling(BIM),data analytics,machine engineering and design,modular/off-site manufacturing,mobile platforms,drones and digital twins are providing the highest performance improvement and return on investment Modular and off-

305、site manufacturing is showing substantial promise and is poised to serve as an industry game-changer over the next 5 yearsA top-driven approach for digital and technological innovations leads to higher adoption A transformation-scale initiative spanning business process,organisation,technology with

306、active culture and change management is required for effective adoption and benefits generation.Leading practices adopted successfully in India ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independ

307、ent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.About the survey and benchmarking tool58DABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global

308、organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG Global Construction Survey 2023 saw participation from 267 senior industry leaders of which 121 represented engineering&construction(E&C)fir

309、ms and 146 represented project/infrastructure owner firms.45 per cent of the respondents operate in the India and are charged with implementation of significant capital investment programmes and projects.The India Edition of this survey captures the views of these 119 respondents which collectively

310、across both groups of owner firms(90 no.)and E&C firms(29 no.).59Engineering/Engineering/ConstructionConstruction121Project/Infrastructure Project/Infrastructure OwnerOwner146Total:267 Global9029119Number of Indian Number of Indian respondentsrespondents24%24%76%76%Engineering/ConstructionProject/In

311、frastructureOwnerABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.

312、60Overall,this survey provides a diverse range of perspectives from various industries,entity types,and revenue brackets,with a specific emphasis on organisations engaged in significant capital investment projects in India.The data collected sheds light on the revenue distribution and industry secto

313、rs represented by the surveyed entities.16 per cent of the respondents from India reported approximate entity revenue from operations in the last 12 months as more than USD20 billion.13 per cent of the Indian respondents reported approximate entity revenue from operations in the last 12 months betwe

314、en USD5 billion and USD20 billion.The concentration of entities in the lower revenue brackets of less than USD5 billion(71 per cent respondents)in India suggests a vibrant and competitive market.Smaller entities can contribute to increased competition,innovation,and cost-effectiveness in the constru

315、ction industry.This is advantageous for project owners as it provides them with a diverse range of options,potentially leading to competitive pricing.10%8%14%34%41%OtherSubsidiary of a quoted companyGovernment agencyQuoted(public company)Private companyIndustry sector(multiple selection allowed)Indu

316、stry sector(multiple selection allowed)30%2%3%5%8%8%10%16%18%22%31%OtherFinancial Services/InsuranceMedia/TelecomsRetail/Consumer ProductsTechnologyHealthcare/Life SciencesReal Estate/HospitalityGovernment/EducationNatural Resources/ChemicalsIndustrial ManufacturingPower/UtilitiesEntity Type(multipl

317、e selection allowed)Entity Type(multiple selection allowed)ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company

318、 limited by guarantee.All rights reserved.61Approximate entity revenue from operations in the Approximate entity revenue from operations in the last 12 monthslast 12 months16%13%34%37%USD 20 billion or moreUSD 5 billion or more to lessthan USD 20 billionUSD 1 billion or more to lessthan USD 5 billio

319、nLess than USD 1 billion16%13%34%37%11%15%32%42%0%10%20%30%40%50%US$20 billionor moreUS$20 billionUS$5billionUS$1 billionGlobalIndiaComparison:Revenue from operations in theComparison:Revenue from operations in thelast 12 monthslast 12 months51%29%26%22%22%19%17%16%16%11%5%IndiaNorth AmericaEurope,e

320、xcluding UKMiddle EastCentral/SouthAmericaRest of AsiaAfricaAustraliaUKChinaOtherRegions of operation(multiple selection allowed)Regions of operation(multiple selection allowed)ABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPM

321、G global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.62About the Tool and User ManualSpecific benefits:a)Access to visually enhanced survey output and valuable construction industry datasets av

322、ailable uniquely with KPMG b)Trend analysis and comparison across India/Global datasets and smart data filters for analysis by industry sector,entity,size and organisation categoryc)Ability to build investment basis for digital and other project performance enhancement levers by leveraging the leadi

323、ng practices and specific datasets developed Disclaimer:Disclaimer:This benchmarking tool represents the data from the responses received as part of KPMG Global Construction Survey 2023 in a confidential manner.Please do refer to the important disclaimers provided in the report that also govern the

324、use of the outputs of this online tool.We are excited to provide our readers with a data analysis tool built on the Indian and global datasets created as part of the KPMG Global Construction Survey 2023.This is an online tool that will enable users to conduct self-assessments and benchmark practices

325、 collated by us through interviews and survey responses,make peer group comparisons,and gain insights to protect against risks and enhance performance.The tool can be accessed at the Global Construction Survey 2023 India edition website.Extract individual graphs by using the focus mode for creating

326、back ups for insights developed using the datasets and leading practices provided in the KPMG Global Construction Survey 2023.Use the navigation bar to move across the respective sections for reference to detailed insights and leading practices provided in the reportSmart Smart filtersfiltersABCDEF

327、2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2016:Building a Technolo

328、gy AdvantageThis survey explores the early stages of the construction industrys investments in technology and what needs to change to begin reaping the benefits.2017:Make it,or Break itThis survey examines how executives feel about governance,people and technology,and how the industry can make the k

329、ind of step change needed to bring performance in line with stakeholder expectations2019:Future-Ready Index Our groundbreaking 2019 survey benchmarks how prepared companies are for a highly competitive and unpredictable future and provides a self-assessment checklist2021:No Turning BackThis survey e

330、xamines how leaderships view organisational resiliency,risk management,portfolio project management,Diversity,Equity and Inclusion(DEI),and technology attributes in managing growth and impact of disruptive events.200920072008200520102011201220142015Prior KPMG Global Construction Surveys KPMG Global

331、Construction Survey-Past editionsABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All

332、rights reserved.Our authors and contributors 64EABCDEF 2023 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by

333、 guarantee.All rights reserved.65Authors Suneel Vora(PMP)Partner,Business Consulting and Transformation Major Projects Advisory and Industry 4.0,KPMG in IndiaE:Puneet NarangPartner,Business Consulting and Transformation Major Projects Advisory,KPMG in IndiaE:Yash Pratap Singh(PMP)Partner,Business Consulting and Transformation Major Projects Advisory,KPMG in IndiaE:Karun Raj Singh Sareen Partner,Bu