No Match Found
The global construction industry is expected to exceed US$10tn by 2022. Emerging countries will generate around two-thirds of this growth, with China and India leading the pack. GCC countries are following a similar trend, and their combined construction industry is projected to surpass US$300bn by 2022.
Yet, challenges loom over this industry, including safety concerns, labor shortages, increasing costs, low localization, unsophisticated regulations, budget restrictions, procurement inefficiencies and stiff competition. Construction companies need to balance these challenges to remain competitive and prosper.
We are a network of international experts with years of experience in the construction industry. We are deeply rooted in the region, and our work in global construction equips us with a unique understanding of the complex GCC construction and development ecosystem.
We serve both private and public sector clients, leading transformation programs for regional and international capital project owners, contractors, and engineering, project management, building materials and facility management firms. Our experience is our guiding force. Our unmatched capabilities, coupled with our in-depth knowledge of the sector, set us apart as trusted advisors.
Designing an engineering firm’s business framework
A Middle East engineering firm needed a high-level growth strategy, new operating model, organization structure, compensation scheme and governance framework to manage the migration of 6,000 full-time employees to new roles.
Strategy& studied the existing business, identified possible growth initiatives, and developed a five-year implementation plan. We designed a new organization structure, which covered more than 20 branches and design centers. We also redesigned an organization grading scheme, detailed new job descriptions, developed a new compensation structure and formed a new governance framework. We rolled out new key management processes, including financial planning, business planning and business performance monitoring.
The overseeing committee approved our recommendations, including our operating model, organization structure and compensation schemes. The firm reached its goal of implementing improved governance framework, corporate structure and management processes.
Building better procurement practices
A leading contracting company in the GCC needed to review their overall procurement processes.
After studying procurement spend data from multiple systems, Strategy& developed a procurement plan and defined procurement policies for the company. We implemented bulk buying and a new spend taxonomy tree. We helped in negotiations with suppliers, contributed valuable engineering and construction methods and conducted automated procurement spend analyses.
These efforts achieved savings of 4%-5%, streamlined procurement operations and enhanced overall capabilities.
Transforming the cement sector strategy
Several clients in the cement industry were struggling to define their distribution strategy, transform their business, and optimize operational processes.
Strategy& introduced new capabilities into the distribution strategy, identified customer segments, and formulated a commercial strategy across the distribution network. We also built a vertical integration strategy to capitalize on falling transportation costs and tap into distant markets. Finally, we recommended new sales processes for nonrecurrent clients, redesigned credit and collection practices and overhauled the invoicing process.
Delivering major Asset & Facility Management (A&FM) savings for a regional developer
A regional developer needed to revamp its facility management operation and optimize costs.
With its comprehensive understanding of the Asset & Facility Management (A&FM) sector, Strategy& studied the client’s operating model and recommended a new sourcing strategy and vendor management processes to key elements for improvement.
As a result, the client decreased its A&FM contracts from 150 to 20, which should save up to an estimated US$80mn over the next 5 years.