How Global Are the World’s Largest Contractors?
— December 3, 2015
By Pankaj Ghemawat and Phillip Bastian
The ENR Top 250 International Contractors survey provides an annual snapshot of the cross-border activities of the world’s largest contractors. Here, we take a longer perspective, using data from the 2005-15 surveys to analyze the globalization of the world’s largest contractors and identify actionable strategy implications.
In 2014, the top contractors earned 36% of their revenues overseas. There was wide variation by country: The top 50 European contractors earned 65% of their annual revenue abroad versus 38% for U.S. contractors and only 13% for Chinese contractors. Compared to other services, these statistics appear to be quite high, as only about 9% of value added in the service sector is traded across borders. However, the ENR Top 250 International Contractors are not representative of all construction contractors. A better benchmark is the Fortune Global 500, whose companies earned 46% of their revenues abroad.
Read the full article as published in Engineering News-Record.
Pankaj Ghemawat is a Global Professor of Management and Strategy and Director of the Center for the Globalization of Education and Management.