Trends Reshaping the EPC Industry

Owing to the current climatic conditions in the European economy, businesses all around the globe are urged to undergo a critical transition, and the EPC sector is no exception.   

FREMONT, CA: Businesses in the engineering, procurement, and construction (EPC) sector hold a crucial role play in the development and implementation of major infrastructure projects like power plants, highways, and refineries. Hence, transformations and advancements blooming in the EPC sector are anticipated to reshape the engineering space to excel with increased efficacy and accuracy in processes.

One such testamental innovation taming the EPC space is digital transformation, gaining monumental significance in recent times. Enterprises in the EPC sector are adopting effective digital technologies like building information modelling (BIM), 3D printing, and virtual reality for effective monitoring and restructuring of infrastructure space.

Harnessing BIM technology assists project managers in better-predicting risks and thereby ensuring data-driven decisions in the arena. Furthermore, BIM models have proven useful for stakeholders for collaborative working, identification, and issue addressing over a project. This, in turn, leads to an efficient and effective construction process. Another technology that is gaining immense popularity in the engineering, procurement, and construction arena is 3D printing, enabling rapid production of complex components and reducing waste, in addition to increased efficacy and cost-savings. Similarly, deploying virtual reality (VR) technology also aims at visualising projects and identifying potential issues much before the commencing of construction, thus, aiding in improvising project outcomes.

Material prices in the EPG space are surging acoustically with no signs of slowing down, with the construction input prices surpassing already up to 24 per cent. Hence, increased labour shortages, along with soaring material prices are critically upscaling competition in the engineering, procurement, and construction sector, underlining the need for businesses to stay on top of the table.

Additionally, rising prices and interest rates for businesses are furthermore signifying a dire need for market dynamics in the EPC sector, especially with soaring inflation rates. Inconsiderate of the recession scenario pertaining globally, businesses in the EPC space are visualising increased opportunities while making a keen note of cost concerns in the sector and its impact to cause backlog for projects. This, in turn, has emphasised the need for a regulated economy and deliveries in the industry, in addition to boosting energy-related construction and data centres.

With the advent of pandemic and economic disruption scenarios, businesses in the EPC sector are highly opting for technology-driven effective transformations. It also aims at tackling issues regarding the supply chain, and thus, businesses emerging to be highly resilient and efficient in the future. As a result, predictive supply chain intel and technology-driven pre-planning in the global arena are critically reshaping and modelling the engineering, procurement, and construction space for a better future.

Sustainability has emerged as a crucial factor in infrastructure development, especially with EPC businesses relying upon environmentally-friendly projects to cope with the soaring demands in the arena. Hence, enterprises in the EPC arena are deploying sustainable materials and construction practices like green roofing and solar panels to reduce carbon footprints in construction processes. Wherein, using electric vehicles for transportation and low-emission missionaries also aid in establishing accuracy and efficiency in construction practices. Opting for sustainable construction practices opens up challenging opportunities like reduced environmental impact and increased cost savings. For instance, traditional construction materials like bamboo are comparatively cheaper, which, when harnessed, allows organisations in the sector to meet growing demands in the current scenario.

Likewise, modular construction is also gaining popularity in the engineering, procurement, and construction space, proffering seamless opportunities for growth and established efficiency. Critically involving building components off-site in a factory and assembling them on-site, the global modular construction market is anticipated to rise to nearly 114.78 billion USD in 2025. Opting for the very approach allows faster construction techniques with reduced waste and time involved while improvising quality control of the process. Modular construction practice can be deployed for a varied range of projects, be they small or large infrastructure buildings. Wherein, employing the module eliminates increased time consumption in the process, in addition to reducing risks of cost overruns, improvising efficiency and delivering high-quality projects for businesses in the EPC sector.

Another feasible transformation that is reshaping the engineering, procurement, and construction sector is collaborative contracting, requiring combined participation and shared risks between clients, contractors, and supporters. The approach aims at projecting effective outcomes in terms of construction processes and is highly focussed on costs, timelines, and contacts sharing similar objectives. However, implementing collaborative contracting requires increased efforts, as it involves increased trust between the parties involved in the project. Opting for this practice assists EPC businesses to emerge as potential leaders in the economy by meeting the suitable demands of clients and delivering high-quality projects, meeting the desired expectations in the arena.

Artificial intelligence (AI) and machine learning (ML) capabilities have reshaped varied sectors horizontally, where, the engineering, procurement, and construction space is no exception, facing improvised outcomes with reduced costs. Deploying these analogies for predictive maintenance, project scheduling, and risk management, aids in analysing increased amounts of data in the EPC sector for an effective identification of patterns, thereby making predictions accordingly. These desired options aid project managers in making informed decisions in the arena.

For instance, harnessing AI and ML technologies enables an effective analysing of data from construction sites, thereby, predicting weather patterns, and material usage, identifying potential issues and developing predictive maintenance plans. These capabilities play a monumental role in optimising project schedules, thus, reducing delays and cost overruns in the arena. It radically aims at facilitating improved project outcomes and reduced costs in the engineering, procurement, and construction horizon.