Capital industries feel pressure on all sides
All industries need to keep pace with changing economies, disruptive technologies and public policy. But for companies building and operating large capital assets – whether in engineering and construction, infrastructure, energy or transportation – the challenge is different. While there is pressure for continuous improvement, projects take time.
In the UK, Crossrail, an east-west London tunnel, was first proposed in 1974. After several different plans and proposals, work finally began in 2009. Passengers will not use the service until 2018. Building extensions and related projects could take until 2026.
In such a world, talk of transformational change and market disruption doesn’t fit the reality on the ground, or in this case, in it. Still, there is a constant pressure on companies in these markets to evolve. And pressure to build capital projects with fewer resources has just notched up a gear or three.