More than seven years have passed since the onset of the financial crisis, and the engineering, construction, and services (ECS) industry has not yet fully recovered from the blow.
Although many ECS companies benefited from the run-up in the broad U.S. equity market in 2013 and 2014, they continued to underperform on fundamental measures. Today, there are concerns about both current and future performance: the industry’s aggregate profit growth and valuation multiples continue to trail the S&P 500 by a sizable gap. Adding to worries about global competition and the pressure it puts on margins and win rates, management and investors alike are paying increasing attention to the construction sector’s low productivity and the potential for a prolonged slump in oil prices.
The oil price slump is having decidedly mixed effects on ECS players. The pace of infrastructure construction is expected to accelerate in the developed markets whose economies continue to recover. But the multiples of ECS companies with extensive exposure to the energy sector, the main engine of the industry’s growth since the early years of this century, are not expected to reap the full benefit. A sustained slump will likely spur increased M&A activity as ECS companies build scale and attempt to diversify their order books beyond oil and gas projects.
This is The Boston Consulting Group’s third annual report on the ECS industry as seen through the lens of shareholders. In this year’s report, we have expanded the company sample to 75 to better reflect the full scope of global companies participating in ECS. This report is a companion piece to the seventeenth annual report in BCG’s Value Creators series. (See Value Creation for the Rest of Us: The 2015 Value Creators Report, July 2015). The series provides detailed empirical rankings of the world’s top value creators and distills managerial lessons from their success. It also highlights significant trends in the global economy and world capital markets and describes how these trends are likely to shape future priorities for value creation. Finally, to help companies improve their management of value creation, the series provides details on BCG’s latest analytical tools and client experiences.
About 60 percent of the top-quartile companies operate mainly in the Asia-Pacific region, reflecting in part the heavy presence of Japanese companies. The remaining emerging-market players in the top quartile are based in Latin America.European companies made a strong showing relative to other developed-market players and account for one-fifth of the top quartile. North American companies are absent from the top quartile, which was not the case in the first decade of this century, when North America was consistently represented.
Work Better Together from Anywhere, Try it Free !!!
Create your own professional report with Google Apps for Business: http://goo.gl/s2JpHs
More than 5 million businesses have made the move to Google Apps to help employees work better together and be more productive, wherever and whenever they work. Google’s solution is cloud-based, which means software updates are as easy as refreshing your web browser. With Google Apps, there are no servers to purchase and maintain, reducing IT cost and complexity.Google Apps includes secure, reliable workplace tools for email, calendar, text and video chat, document creation, project websites, and online storage and sync, and allows for easy extensibility with hundreds of applications in the Google Apps Marketplace.
Create your own professional report with Google Apps for Business: http://goo.gl/s2JpHs
No hay comentarios :
Publicar un comentario