Renewable Energy: Mid-Tier Construction

Renewable Energy: The Next Opportunity for Mid-Tier Construction

Mid-tier construction companies face a changing business landscape as we head towards 2020 and beyond. Markets are crowded, revenue forecasts are becoming less optimistic and traditional growth strategies are struggling to make an impact.

However, with change comes opportunity and those willing to re-evaluate their positioning and strategy can find those opportunities for growth, and develop a competitive edge.

Here, we look at how construction of infrastructure to support the renewable energy market may offer mid-tier construction firms a viable growth opportunity.

Increased diversification: a key pillar for building competitive advantage

When evaluating their strategy, construction companies should focus on the three pillars of competitive advantage identified in our industry study, “Onwards and Upwards: Finding a Competitive Edge in the Mid-tier Construction Market:”

1.  More sophisticated delivery models: greater integration across the value chain
2.  Diversification: the ability to switch and compete in other segments
3.  Increased financial strength: robust balance sheet and cash management

In particular, the second pillar – diversification – makes firms less vulnerable to segment specific declines in the market, empowering firms to pursue growth segments while reducing the downside risk.

Looking ahead, construction of infrastructure to support the renewable energy market may offer mid-tier construction firms the opportunity to diversify their portfolio.