Builders work at a property construction site in Huai'an, Jiangsu province. （Photo by Zhou Changguo/For China Daily）
Enstoa Inc, a New York-based services firm specializing in capital projects, is seeking increased cooperation with China's State-owned enterprises.
The company is also looking to work with China's small and medium-sized engineering and construction companies.
It vows to help improve project portfolio performance through its functional and digital expertise in international capital projects and proven methodologies, said Zhao Xin, Enstoa manager of strategy and consulting, during an interview with China Daily.
Zhao further said that Enstoa can help companies seek more opportunities on the international stage beyond the Belt and Road Initiative.
The company has been collaborating with Sinopec Engineering Group (SEG), as well as its subsidiaries, introducing advanced technology platforms to ensure the profitable and risk-mitigated delivery of capital-intensive projects around the world.
SEG said earlier it aims to use the manual to train 200 senior executives and 400 executive staff by 2020 to expand its presence in overseas markets.
According to Zhao, as many international engineering projects are adopting US and European standards, it's necessary for domestic companies catch up, and Enstoa can apply its advantages in accordance with the rules of the game on the global stage.
The construction industry in China is significant and under pressure to generate growth. Considering the fact that China, together with the US and India, are leading the way and accounting for 57 percent of all global growth in the construction market, which is believed to grow to $8 trillion by 2030, the potential in China is huge, he said.
According to McKinsey, research and development spending in construction runs well behind that of other industries, standing at less than one percent of revenues, versus 3.5-4.5 percent in the auto and aerospace sectors.
Large projects across asset classes typically take 20 percent longer to finish than scheduled and often run up to 80 percent over budget. Construction productivity has declined in some markets since the 1990s, and financial returns for contractors are often relatively low and volatile, said the company.
Based on its successful experience with SEG, Enstoa has been in discussion with a number of companies, including WISON, as they drive their future forward with digital transformation to bring international experience in engineering procurement, construction and risk control in construction projects overseas.
Todd White, general manager for the China region, said the company will bring its global experience of working in seven offices to help accelerate the digital transformations of domestic companies.