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RIB survey reveals optimism in construction sector, despite challenges
Software company RIB Software’s ‘2025 Industry Outlook Survey’ reveals a wave of optimism in the construction sector, with 97.6% of respondents anticipating revenue growth and a robust project pipeline.
VP Peter Damhuis explains that the survey demonstrates the resilience and adaptability of the construction sector, with the Middle Eastern and African sectors having grappled with economic uncertainties, rising costs and regulatory constraints, and South Africa experiencing the additional threat of construction mafias.
Beyond optimism, there is a focused commitment to leveraging technology and innovation to navigate challenges and seize growth opportunities, Damhuis avers.
“It’s fantastic to see such optimism from our 251 survey respondents, with 98% predicting increased revenue and project activity in 2025,” he highlights.
The building sector, representing 28% of respondents, and civil contracting at 26%, lead the charge.
General contractors, accounting for 18%, also show strong confidence.
Here, the majority of participants project a revenue increase of at least 5%, with nearly 39% anticipating growth exceeding 15%.
The optimism extends to project pipelines, with over 97% expecting expansion.
The surge in growth is fuelled by several factors. Increased government-led infrastructure spending, identified by 30.6% of respondents, is expected to create considerable opportunities for civil and general contractors, while expanded private sector work, cited by 42.6% of respondents, is expected to support the building sector in scaling up its operations.
Also, private funding via public-private partnerships is anticipated to accelerate project launches and enable innovative solutions.
Sustainability also plays a key role, with 40.6% of respondents embedding environment-conscious practices into their strategies to align with global environmental goals.
CHALLENGES AND OPPORTUNITIES
Despite this optimism, the industry continues to face challenges, such as attracting and retaining qualified individuals.
This was a concern for 31% of respondents, while rising input costs were noted as a concern by 34.2% of respondents.
“Apart from the majority of respondents suggesting that two of the biggest risks are rising costs due to global unrest and construction mafias in South Africa, 15% of participants highlighted regulatory complexities and power-generation constraints as risks,” explains Damhuis.
“However, more than 58% of respondents highlighted digital transformation as the top of their strategic agendas for 2025 – a key initiative to address hurdles while leveraging advanced technologies to mitigate risks and enhance efficiency,” he points out.
The survey data highlights industry’s focus on adopting digital solutions to maintain a competitive edge.
Several respondents plan to use building information modelling for enhanced design and cost estimations, falling into the top ten priorities for deployment this year.
Cloud and real-time collaboration technologies were considered as important tools this year.
Digital transformation strategies, selected by 58.1% of respondents, are expected to impact the future of construction practices.
Sustainability efforts are further reinforced by 137 companies implementing carbon-reduction strategies, with 74% reporting progress in reducing their carbon footprints over the past year.
The survey reveals that firms are planning significant investments in technology and expansion.
About 61.3% of respondents expect to increase their IT budgets for this year.
The diversification of offerings and geographic expansion are strategic initiatives for 46.6% and 35.8% of respondents, respectively.
The industry is also prioritising safety, with 35.4% of participants highlighting it as a critical focus area.