flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Inefficient supply chains, outdated project delivery systems hamper construction investment

Codes and Standards

Inefficient supply chains, outdated project delivery systems hamper construction investment

Additional complexity makes it harder to justify, construct physical assets.


By Peter Fabris, Contributing Editor | July 8, 2022
Manufacturing Plant
Courtesy Pixabay.

Constructing and justifying the cost of physical assets such as a manufacturing plant is much more difficult than it was decades ago, according to a report by Steffen Fuchs, senior partner with McKinsey & Company.

Inflation, rigorous sustainability requirements, and rapid changes in technology and regulations all complicate investment in new construction projects, the report says. “Adding to the complexity, the next generation of assets needs to be “set and forget”: the high cost of building them must be offset by lower operating costs,” Fuchs writes.

Improvements in construction processes and project delivery are especially necessary given that a new wave of “once-in-a-lifetime” capital spending on physical assets will take place between now and 2027. Roughly $130 trillion will pour into projects to decarbonize and renew critical infrastructure, Fuchs writes.

Project leaders typically rely on practices that aim to optimize individual investments, such as a nuclear power plant, an oil refinery, or a pipeline. Cost overruns are typical and costly using this approach. New decarbonization and sustainability investments where groups of similar projects (such as wind farms and solar parks) are delivered repeatedly over a long period of time require much better performance, Fuchs says.

Related Stories

Standards | Jan 31, 2023

Standard establishes best practices for rainwater and stormwater harvesting system

The market is seeing an increasing number of residential, commercial, and industrial rainwater and stormwater systems being installed.

Green | Jan 26, 2023

Corporations fall short on climate pledges by failing to embed net-zero actions into operations

Many corporations are failing to implement simple, practical steps needed for them to hit their stated decarbonization goals, according to a survey of more than 300 operations managers across key industrial sectors including construction, energy, and chemicals in the U.S., U.K., and Germany.  

K-12 Schools | Jan 25, 2023

As gun incidents grow, schools have beefed up security significantly in recent years

Recently released federal data shows that U.S. schools have significantly raised security measures in recent years. About two-thirds of public schools now control access to school grounds—not just the building—up from about half in the 2017-18 school year. 

Concrete | Jan 24, 2023

Researchers investigate ancient Roman concrete to make durable, lower carbon mortar

Researchers have turned to an ancient Roman concrete recipe to develop more durable concrete that lasts for centuries and can potentially reduce the carbon impact of the built environment.

Government Buildings | Jan 9, 2023

Blackstone, Starwood among real estate giants urging President Biden to repurpose unused federal office space for housing

The Real Estate Roundtable, a group including major real estate firms such as Brookfield Properties, Blackstone, Empire State Realty Trust, Starwood Capital, as well as multiple major banks and CRE professional organizations, recently sent a letter to President Joe Biden on the implications of remote work within the federal government.

Multifamily Housing | Jan 9, 2023

New York City advances plan to build 500,000 new housing units

After New York Mayor Eric Adams announced a “Moonshot” plan to build 500,000 new housing units over the next 10 years in early December, he moved quickly to jumpstart the process.

Sustainability | Jan 9, 2023

Innovative solutions emerge to address New York’s new greenhouse gas law

New York City’s Local Law 97, an ambitious climate plan that includes fines for owners of large buildings that don’t significantly reduce carbon emissions, has spawned innovations to address the law’s provisions.

Codes and Standards | Jan 9, 2023

EPA reverses course on clean water rule changes enacted by Trump administration

After long legal battles and extensive debate over the expansiveness of the Clean Water Act, the Environmental Protection Agency repealed changes enacted by the Trump administration.

Multifamily Housing | Dec 29, 2022

San Jose is largest U.S. city to abolish minimum parking for new housing

San Jose, Calif., recently became the largest U.S. city to strike down minimum parking requirements for new housing development. The city reversed zoning devised in the 1950s that reputedly gave it the worst sprawl of parking space in northern California. 

Codes and Standards | Dec 29, 2022

New York City multifamily owners concerned over fires caused by e-bikes

In 2022, there have been nearly 200 fires and six deaths in New York City caused by lithium-ion batteries used in mobility devices such as electric bikes and scooters.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021