Our latest Barometer Report has revealed the most optimistic outlook on investment since we began surveying the industry back in 2010.
We found that 93% of port owners and operators expect capital expenditure budgets to increase over the next 12 months, and 88% expect operational expenditure budgets to grow too. The picture was even brighter when we surveyed consultants and contractors, with 98% expecting both CapEx and OpEx to grow.
This is certainly a positive step, but those increased budgets need to be spent strategically to really help ports to increase efficiencies which, unfortunately, doesn’t really seem to be happening at the moment. 61% of consultants and contractors felt that their clients were concerned by upfront purchase costs, rather than prioritising whole life value. Seemingly, attitudes towards procurement still need to change.
To me, this focus on up-front purchase cost may have been understandable while we were suffering the effects of the economic downturn, but with budgets expected to rise, the industry as a whole needs to take steps to ensure we implement high-quality solutions.
The report revealed that ports are already under pressure to adapt to increasingly complex demands on infrastructure – they risk falling further behind if they don’t act now to optimise new investment opportunities.
Ultimately, though, I take a positive message away from the findings of the report: as the market continues to strengthen, there’s an opportunity to take a bold and deliberate step to get ahead of demand and invest strategically now.
The have a look at the full results of the latest Barometer Report, visit the Trelleborg Marine Systems website.