“Construction’s Growth Challenge”
In the February 23, 2011 issue of The Financial Times, Booz & Company Senior Partner Per-Ola Karlsson (Europe) and Partners Fadi Majdalani and Ahmed Youssef (both Middle East) wrote that the Gulf Region’s construction industry must reinvent themselves to adjust to a wave of growth defined by multibillion-dollar projects and complex civil works. “The industry’s watchwords have changed from ‘small, simple and single to ‘colossal, complex and coordinated,’” the Booz & Company co-authors wrote, adding that contractors looking to thrive in this new environment must overhaul their banking relationships to compensate for more complex financing leads; and create networks of reliable subcontractors, who must be managed carefully to keep projects on time. “In spite of all these challenges, companies can remain confident: the region’s building boom will continue for the next few years,” Karlsson, Majdalani and Youssef wrote. “But booms do not benefit everyone equally. Those that will do best will be the ones that refashion themselves, reworking every aspect of critical operations such as supply-chain management, staff development, systems integration and investment.”