In this still, slowly recovering economy, financial market and investor demands for quicker and greater returns have accelerated. This has forced facility development executives and construction project managers to push corporate growth strategies to the limit.
Under heavy pressure to capture new consumers in emerging global markets, where economic and population growth is rapidly rising, they are faced with a dilemma. They can continue down a strategic path that appears sound, and ignore the significant risks that accompany access to these new markets. Or, they can devise a plan to significantly mitigate substantial exposure.
So far, undaunted, businesses are charging headlong at the opportunity. Since 2012, global corporations have invested more in emerging markets than in the core economies of the U.S., Europe and Japan, and growth of the middle class in these regions is expected to continue through 2050.*
Driving this surge is an intense determination to exponentially improve revenue results, which is commendable. But risks must first be identified and negated.
* World Investment Report of UN Conference on Trade and Development, 2013
“Innovation, speed and bold action are all associated with risk. So if you're avoiding risk, you're avoiding some of the very qualities your organization needs to excel or perhaps even just survive.”Steven J. Thompson, CEO, Johns Hopkins Medicine International
Intelligent risk management is a necessary element for ensuring return on investment. So while some risks are by their nature unpredictable and unmanageable – such as geo-political unrest – facility development executives must focus on what they can control.
Controlling risks, especially in underdeveloped global markets is a strength of Butler Manufacturing™, the leading global provider of building solutions. Corporations that partner with Butler have found that engagement in the early planning stages has lead to better on-site performance, shorter construction schedules, lower long-term maintenance, and more importantly, mitigation of risk in the supply chain.
Butler® relieves the stress of uncertainty through leadership and experience
Promoting proactive market growth and rapid return on investment in locations that are inherently risky and unstable is why company executives are now ranking contractors on their risk management competency. It’s the only way to achieve outcomes that will enable companies to overcome obstacles and out-smart competitors.
Failure to properly identify risks at the bid stage is a primary cause of underperforming projects. However, collaboration with Butler in a design-build approach helps in identifying risks sooner. This interactive partnership enables Butler and their corporate customers to define and enhance frame and building envelope material requirements, which leads to reduced project schedules, improved safety, and enhanced opportunities for cost savings.