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Due to the current financial crisis, confidence is plummeting amongst leaders in the engineering and construction industry, according to a PricewaterhouseCoopers survey.

Amidst the current economic crisis, CEOs in the engineering/ construction industry are less confident about growth prospects, according to PricewaterhouseCoopers' (PwC's) 12^th Annual Global CEO Survey. A mere 18 per cent of company leaders in the industry feel very confident about increasing revenues over the next year, compared to 56 per cent in last year's study.

Other findings further illustrate this marked fall in confidence. Of the 80 engineering/construction CEOs interviewed:

• only 15 per cent are very confident about revenue growth across the sector over the next three years;
• more than 40 per cent are extremely concerned the disruption in capital markets will affect growth;
• more than 75 per cent expect difficulties in the global banking system will increase the cost of finance and restrict access to finance;
• approximately 66 per cent anticipate global banking system issues will delay investment plans and limit growth expectations; and
• 29 per cent predict reducing 'headcount' this year.

Additionally, contract disputes are likely to increase as the engineering/construction sector becomes more financially constrained. Consequently, it is recommended CEOs ensure contracts are carefully evaluated for risk factors throughout the supply chain.

Despite the current financial crisis, Michael Clifford, leader of the engineering and construction practice at PwC Canada, remains hopeful.

"Companies working in the E&C industry are not new to working in difficult economic times," he said. "While it is true some companies may fail, most won't. The ones focused on building sustainable business may even prosper now and undoubtedly in the longer term."