This article appears in the first issue of Construction Connection, a new magazine from Oracle.

Through 2020, the Global Construction Perspectives & Oxford Economics report estimates that over US$97.7 trillion will be spent on construction projects globally. In 2010, the growth within the engineering and construction market was US$7.2 trillion and by 2020, that growth will move up 67% to US$12 trillion.

Is your company prepared to make the most of the emerging opportunities?

To take advantage of emerging opportunities, owners/operators and contractors must assess the business challenges faced in today's global construction market - challenges that for the most part begin with constrained capital.

An industrial, commercial or infrastructure owner must focus on where to spend limited dollars while contractors seek improved ways to differentiate themselves as they compete for business. Capital constraints do not just affect the backlog; they affect the work contractors have in-flight.

Garrett E. Harley, director of Engineering & Construction Strategy for Oracle's Primavera, says, "As economies stabilize, a contractor's readiness to align to the areas where owners will invest is crucial, and those services will likely face increasingly stiff competition and higher risks. All projects in our industry will require the E&C community to work together. Alternative project delivery mechanisms are increasingly familiar in this new era...and technology can facilitate a communication and collaboration bridge to drive projects forward."

For instance, building information modeling (BIM), virtual design and construction (VDC) and spatial visualization are changing how projects are conceived, valued, and delivered. Before a shovel ever hits the ground, owners are increasingly interested in the constructability of their capital investments.

"Visualization is a power force and is here to stay," adds Harley.

"Contractors must embrace these methods if they are to remain competitive in their abilities to pursue and land new projects and find ways to leverage visualization technology throughout the lifecycle of a project, from build to hand-over."

While technology can certainly improve efficiency and visibility, construction ultimately requires skilled labor-a growing problem in the current global market. The SmartMarket Report from McGraw Hill Construction entitled "Construction Industry Workforce Shortages: Role of Certification, Training and Green Jobs in Filling the Gaps" noted that the already aging industry workforce has been further depleted by the poor economy and that there is an insufficient pipeline of younger workers to fill the emerging gaps. The study shows that 69% of architect, engineer and contractor professionals expect skilled workforce shortages in the next three years.

Harley confirms, "The average age in the industry is in the mid-50s. A looming wave of retirements threatens the institutional knowledge that has accumulated over the last 30 years. In several key industrialized countries, the global recession has directly hit the skilled labor pool and many of those laborers will not be back...either having changed careers entirely, or favoring early retirement. Companies need a way to capture this information in the form of best practices and re-use it for the next generation."

One last major hurdle facing owners and contractors in today's market is the demand for more sustainable construction methods and structures as well as the changing regulatory environment. The federal government has implemented very aggressive energy goals for all government agencies and private entities are drafting similar objectives.

Sustainability is a checklist on all types, sizes and scopes of projects across industrial, commercial and infrastructure markets. In fact, sustainability practices can be a differentiator in winning a project. However, sustainability practices also increase regulatory hurdles for many contractors who must prove those valuations are delivered as originally intended.

Industry studies and expert assessments have found that the best way to meet today's challenges-constrained capital, technology advancements, scarcity of talent and sustainability/green initiatives-and turn them into opportunities is for owners and contractors to leverage technology to increase financial discipline, improve operational excellence and reduce risk.

If you would like to read more on this topic, click here to read the whitepaper, "Meeting the Challenges of Infrastructure Growth by Leveraging 4D Building Information Modeling (BIM)".