Top 10 EPC Companies - 2022

2022 got off to a strong start for the engineering and construction (E&C) industry but was met with several strong headwinds, including rising costs and labor shortages.

On the one hand, the nonresidential segment is likely to be buoyed by funds entering the market from the Infrastructure Investment and Jobs Act and the CHIPS and Science Act of 2022. On the other hand, residential construction companies are relatively more pessimistic about the industry outlook for the next year compared to other segments.

There has been a massive shift from non-renewable sources of energy to renewable sources of energy which is leading to the construction of hubs that can generate power from renewable sources like wind, thermal, solar, tidal, etc. Such EPC projects employ new technologies for construction and are usually high-value projects. Therefore, the trend towards renewable sources of energy consumption will aid EPC contractors to generate high returns projects with the same time period compared to the traditional non-renewable energy generation projects.

The E&C companies that stand to benefit most are likely to be those that can quickly align and adjust to accommodate a net zero future. That will mean maintaining traditional operating models while, on parallel tracks, creating new models to help drive new revenue streams supporting green (or greener) infrastructure. Doing so will require myriad new capabilities — either acquired internally or via alliances or acquisitions — including building assets with more energy efficiencies, cleaner fuels and power and the adoption of new digital services to help reduce site-based carbon footprints.

E&C firms can position themselves to benefit from a resurgence in infrastructure work by progressing on numerous fronts. Indeed, firms across the sector are at different points on the green-infrastructure maturity curve, so some will need to ramp up efforts more than others. Specifically, there’s mounting demand for players in the sector to sharpen their expertise in areas including digital twins, carbon ledgers, net zero as a service, supply chain control towers, and e-commerce portals for customers to collaborate on project development and delivery.

Let us know your thoughts.