Shaping the Future of Construction

The Engineering & Construction (E&C) industry, which accounts for 6% of global GDP, has faced stagnant labour productivity for decades due to fragmentation and slow technology adoption. The World Economic Forum proposes a transformation framework focusing on digital technologies like Building Information Modelling (BIM), advanced materials, and 'lean' construction processes. The report argues that while individual companies must spearhead innovation, systemic change requires industry-wide standardization and government support through harmonized building codes and innovation-friendly public procurement.

• The construction industry has a massive global economic and environmental footprint, accounting for approximately 6% of global GDP and consuming about 50% of global steel production. Furthermore, constructed objects are responsible for 25-40% of total global carbon emissions.
• Labour productivity in the construction sector has remained nearly flat for 50 years, with some regions seeing declines; for example, in the United States, construction labour productivity fell by 19% between 1964 and 2012.
• Building Information Modelling (BIM) is identified as a central enabler for industry transformation, facilitating collaboration across the entire life cycle of an asset. Full-scale digitalization in non-residential construction could potentially save between $0.7 trillion and $1.2 trillion annually in E&C costs within 10 years.
• The adoption of 'lean' construction principles—focusing on waste reduction and synchronized work flows—can significantly improve efficiency, with the potential to reduce construction completion times by 30% and costs by 15%.
• Advanced building materials (ABMs) and prefabrication offer significant productivity and cost gains. For instance, modular construction applied to onshore chemical plants has achieved capital-expenditure reductions of 20-40%.
• The industry faces a critical talent shortage and an ageing workforce, particularly in developed countries. In the US, the average age of construction workers rose from 36 in 1985 to 43 in 2014, while the proportion of workers aged 45-64 increased from 25% to 40%.
• Government action is essential to reduce project delays and costs. The report suggests that if all countries committed to specific time limits for approvals, up to $1.2 trillion in infrastructure could be added by 2030.
• Corruption remains a significant barrier in E&C procurement. A study of eight EU countries found corruption probabilities ranging from 9-21% in road and rail to 37-53% in urban or utility construction, costing an estimated €1.3-1.9 billion per year in those countries.

APA

World Economic Forum (2016). Shaping the Future of Construction. http://www3.weforum.org/docs/WEF_Shaping_the_Future_of_Construction_full_report__.pdf

Chicago

World Economic Forum. Shaping the Future of Construction. 2016. http://www3.weforum.org/docs/WEF_Shaping_the_Future_of_Construction_full_report__.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Shaping the Future of Construction |date=May 2016 |url=http://www3.weforum.org/docs/WEF_Shaping_the_Future_of_Construction_full_report__.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2016shaping, author = {{World Economic Forum}}, title = {{Shaping the Future of Construction}}, institution = {World Economic Forum}, year = {2016}, month = may, url = {http://www3.weforum.org/docs/WEF_Shaping_the_Future_of_Construction_full_report__.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }