L.E.K. has extensive experience in construction and engineering services for a range of end markets across the globe. Our expertise covers an array of services across engineering (e.g., architecture/design, engineering consulting), general contracting and property management (e.g., civil contracting, infrastructure contracting, building) and specialty subcontracting services (e.g., concrete and asphalt cutting, geotechnical services). We are familiar with the key factors that should be taken into consideration when developing a growth strategy, including the sources of growth, value drivers and paths to achieve value creation. 

Examples of our work

We have helped companies combat market declines and position to grow through organic and inorganic growth opportunities. 

  • Strategic option development: L.E.K. facilitated a strategy refresh for a leading global construction services provider that led to increased returns from its global operations. Our work highlighted areas where a concerted program of initiatives, together with some internal changes, could deliver significant improvements to the group’s business and profitability. The program of initiatives led to clear improvements in the ability to win large projects, refocus on profitable segments and successfully transfer technology between regions. 
  • Service offering optimization: A leading concrete demolition and construction services provider wanted to combat the decline in the construction industry. L.E.K. helped the client develop an actionable strategy to grow EBITDA fivefold and provided the client with insight on how to improve sales force effectiveness by introducing new performance measurements and incentives.  
  • Private equity: L.E.K. supported a private equity firm in assessing the investment opportunity, to include tax reduction, in a European operator that specializes in housing renovation. Perspectives of the current real estate investments’ fiscal incentives, market perspectives and competitive environment were studied in detail to assess precisely the potential for this specific segment given large uncertainty due to political elections. 
  • Diversification strategy: The client, a small engineering company, requested assistance to define their diversification/international growth strategy. L.E.K. assessed the client’s capabilities and prioritized markets and geographies that were a suitable fit, and identified new potential growth opportunities. Based on the identified opportunities, we built a prioritized set of opportunities with associated timing and action steps to pursue the opportunities. 
  • Strategy: During the past six years, L.E.K. has built a long-term relationship with a leading French construction company that focuses on civil engineering work. We helped the company define its DNA and core values in order to develop a strategic road map adapted to its culture. We teamed up with the executive team on several assignments, including identifying a growth strategy plan, M&A policy definitions and synergies from potential acquisition targets. Our team was also involved in the postmortem analysis of the latest five-year plan to better understand the recent successes and difficulties of the group.
  • Strategic review: L.E.K. performed a six-month strategic review involving extensive collaboration among a global construction contractor’s team of senior business managers, supplemented by our rigorous analysis and insights from customers, competitors and industry specialists. The review highlighted key areas where a concerted program of initiatives, together with aligned internal changes, could deliver significant improvements to the group’s business and profitability. This program focused principally on:
    • Prioritizing regions of the world for growth, end markets/verticals for growth, and end service segments (which types of construction services) for growth
    • Increasing revenue and profit from large projects
    • Improving the group’s risk management
    • Accelerating internal transfer of technologies across the group’s global operations

    Within 18 months, the group financial results had significantly improved, with an increase in revenue of 14%, operating profit more than doubling and share price increasing by 400%.
  • Value growth strategy: L.E.K. helped a civil construction company assess its growth options within core and adjacent markets. For the most attractive opportunities, we determined the value creation potential, feasibility and investment required. We provided the client with a clear path forward on strategic options, with the two most attractive opportunities potentially able to generate between $70 million and $90 million of incremental shareholder value.

How do we help clients achieve high-impact results?

Learn about how L.E.K. can help you with your Building & Construction needs.