Integrating Value & Scale through ‘EPCF’

As companies go global, the geographic spread of projects demands greater visibility, information flow, and collaboration among business units. Adoption of technologies and solutions such as big data and analytics, mobility, IIoT, and digital content management across the value chain will help improve collaboration, effective project execution in a complex environment, and intelligent decision-making.

The engineering and construction industry is undergoing exciting digital transformation. EPCM 4.0 or “extended contracting model with digital power” is changing the game. There is increasing focus on operations & maintenance. Digital will transform the industry at large.

The winds of change have been blowing in the EPC industry since 2014. If there is one thing of which we can be certain, it is that the pace of change will only accelerate over the next decade. The traditional model has been thought by the industry to leave project-owners exposed to perceived rising costs and potential risks, and has in instances led them to reconsider how risk is shared and managed with consultants/contractors.

The business and regulatory environment is changing and it’s changing fast. The industry is experiencing business consolidation, diversification, and sluggish growth in the VUCA world. The perennial issues of fluctuating raw material prices, skilled workforce availability, and dynamic scope changes make it tougher to manage profitability. Increasingly, the project owners now prefer lump sum turnkey (LSTK) business contracts thereby putting additional margin pressures for EPC contractors.

There are new opportunities with rise of EPCM model, digital manufacturing (Industry 4.0) and SMART cities. EPC companies are best positioned to capitalize on these opportunities by investing in digital operations, enhanced collaboration and new business models.

Much of the discussion about the future is focused on new technologies and digitalization. Certainly, employing technology to better manage processes and data is a prerequisite for advancement. However, while the past decade has been more focused on data acquisition and optimization within silos, the next will be focused on connecting data threads across parties, databases and project phases—and leveraging that data to optimize overall outcomes for a project.

Untapped value will force a change in the nature of the relationship between owners and EPC firms toward one that is more collaborative. The result will be better designs and facilities, and a more comprehensive understanding of project economics across the lifecycle, with fewer surprises for all parties.

Young, pragmatic engineers will see the potential to help achieve substantive and necessary change in an industry that embraces technology, innovation and collaboration to help society meet its energy and material needs in a way that is more sustainable for future generations

Digital is the new construction partner. Digital transformation is going to help in competing with emerging market players as well as to drive gains in productivity, quality, and operational efficiency.

MEASA is well positioned to capitalize on these opportunities through the investments in digital operations and enhanced collaboration. In addition to this, MEASA is also focusing on the considerable amount of data generated during the design, procurement, construction and operations and is geared to harness these and drive value, reduce cost, and create digital assets.

Social Metamorphosis

Metamorphosis is manifested through de-globalization, re-localization and autonomization of local and regional economies. Welcome to the Age of Entrepreneurship!