Building blocks - understanding the investment fundamentals of construction and engineering
A look at the changes taking place in the industry and the basics that are needed for company analysis
Add BT as a preferred source
CONSTRUCTION and engineering is almost certainly the oldest industry we will explore in our investment frameworks series, as it goes back to our fundamental need for shelter. In 4850 BC, our Neolithic ancestors constructed the Cairn of Barnenez - the world's oldest-surviving building. This prehistoric Parthenon is 72 metres long, 25 metres wide, and over eight metres high - an impressive size considering it took another 1,350 years to invent the wheel.
Jump to the present, and the industry is being revolutionised by technological advancement, albeit in a more subtle way than the progression from wooden hovels to steel skyscrapers. This shift, termed 'Industry 4.0', is more akin to the changes already happening in the finance and insurance space (fintech and insurtech).
As such, elements of this guide may seem familiar, though definitely different in application. We will first examine the changes taking place in the industry, as these will lay the foundation for company analysis.
Copyright SPH Media. All rights reserved.
