Beyond Vertical Integration: The Re-engineering of the Design and Construction Industry

For decades, mergers and acquisitions have shaped the design and construction industry’s business landscape. Through these mergers, companies have often achieved better economies of scale, branched out into new geographies and added new services and expertise. Although the industry consolidation has occurred – and continues to take place – at a relatively slow pace compared to other economic sectors, in recent years a growing number of large, multinational engineering and construction (E&C) companies have combined disciplines and expertise into full-service firms.

While design and construction functions are becoming increasingly complex and require ever-more specialization, the disciplines’ segregated silos are crumbling, creating space for integrated, cross-disciplinary thinking; new risk management strategies; and comprehensive business structures. The recent surge in Public-Private Partnerships (P3s), the ongoing evolution of design and construction functions, the widespread adoption of high-resolution digital modeling, and technological trends like cloud computing and “big data” are just a few of the most visible examples of this transformation. What we have is the emergence of the polymath or “master builder,” reintegrated – within companies or between industry players.

You will learn about:

Digital ubiquity

The continuing squeeze for capital

A shift to systems thinking