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January 31, 2022

The state of energy and utilities construction projects around the world

New figures released by GlobalData show that the energy and utility construction project pipeline in Western Europe is healthier than that of any other region, while in North America the sector is struggling to meet deadlines.

By Data Journalism Team

New figures released by GlobalData show that the energy and utility construction project pipeline in Western Europe is healthier than that of any other region, while in North America the sector is struggling to meet deadlines.

Western Europe has a score of 0.91 in GlobalData’s November 2021 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.

Every construction project in GlobalData’s database is assigned a score of between 5 and -5 based on its current progress, a score which is continually updated over time. These are then weighted by the value of each project in order to come to overall scores for countries, regions, and sectors.

Also performing well are Australasia (0.86) and Eastern Europe (0.79). South Asia has seen the greatest improvement, with its score on the index rising from -0.04 in October 2021 to 0.57 in November 2021.

Meanwhile, Australasia has made the most significant recovery from the pandemic. The region's score on GlobalData's Construction Project Momentum index has gone, when it comes to energy and utility projects, from an average of 0.21 at the height of the pandemic (March-December 2020) to 0.86 in November 2021.

Which regions are struggling?

While the construction sector in Western Europe may be thriving, in North America the situation is less positive.

North America has a score of just 0.02 in GlobalData's Construction Project Momentum Index, indicating frequent project delays and cancellations.

Also struggling to fulfill energy and utility construction projects on time are Latin America (0.06) and Sub-Saharan Africa (0.12).

North America has seen the sharpest deterioration in recent months, with its score on the index falling from 0.76 in October 2021 to 0.02 in November 2021.

Meanwhile, North-East Asia has had the weakest recovery from the pandemic. The region's score on GlobalData's Construction Project Momentum index has gone from an average of 0.5 at the height of the pandemic (March-December 2020) to 0.23 in November 2021.

The Construction Project Momentum Index

GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.

Each project is continually monitored for updates, with updates indicating progress increasing the project's score while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.

The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.

Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids or the reducing of the project's scope.

Events that can increase a project's score on the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.

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