Despite the deepest recession in 60 years, the construction industry is surprisingly positive about its future prospects, according to KPMG International’s latest Global Construction Survey report.

The report Navigating the storm: Charting a path to recovery?, presents the views of more than 100 senior executives of some of the world’s leading engineering & construction companies across 30 countries.

Interestingly, almost two thirds of respondents expect to either increase or at least maintain profit levels by mid-2010. To date, the sector appears to have weathered the economic storm, with around half of the respondents reporting order books and profit rates at similar or greater levels than a year ago. However, as longer-term projects wind down for some contractors, much may rest on the impact of the proposed government stimulus packages. Here, only a small minority believes that these will bring significant opportunities while a majority expects some kind of positive effect.

Other issues addressed in this year’s survey include:

the war for talent

risk management

sustainability

the proposed changes to revenue recognition.

The results - which have been supplemented by comments from specialist from KPMG member firms - should make compelling reading for anyone involved in the industry.

We hope you find the report interesting and thought-provoking.