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Today’s Vision – Tomorrow’s Reality?

Explore the challenges and strategies in mega projects for today and tomorrow. Discover how commodity pricing shifts, equipment and labor costs impact project execution. Learn about critical industry trends and innovative strategies to overcome obstacles effectively.

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Today’s Vision – Tomorrow’s Reality?

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  1. SESSION 1 Today’s Vision – Tomorrow’s Reality? Session Presenter Bill HallManaging Director, Mega ProjectsWorleyParsons

  2. Agenda • Many challenges today • Commodity pricing – fundamental shifts • Equipment and labor costs • Project execution impacts • Strategies to meet the challenges

  3. Significant Challenges: Today and Tomorrow • Annual Engineering Graduates in 2006 • USA 60,000 • China 200,000 • Average USA “Professional Workforce” Age in ECC industries • Over 50 years old • And many more issues But even more critical: What is happening in overseas markets?

  4. Commodity Pricing - Fundamental Shifts

  5. Global Metals Outlook

  6. Global Metals Outlook

  7. 14Mta Global Metals Outlook

  8. Fundamental Pricing Shift

  9. Steel Prices to Surge “There is a strong view within the Chinese industry that miners will achieve the 85 percent increase, exceeding a 65 percent rise already agreed with a key Brazilian miner.” The Australian Financial Review April 2008

  10. Equipment and Labor Costs

  11. Equipment Costs Rise

  12. Labor Costs Rise 1990-2000: 3% YOY increase 2000-2008: 4% YOY increase

  13. Project Execution Impacts

  14. Project Delays

  15. Increasing Risk

  16. Increasing Development Time

  17. Increasing Engineering Backlogs

  18. Strategies to Meet the Challenges

  19. Strategies • HSE performance • Workshare • Accepting increased responsibility • Partnering • Early engagement • New technologies

  20. Strategies • HSE performance

  21. Strategies • HSE performance • Workshare

  22. Strategies • HSE performance • Workshare • Accepting increased responsibility

  23. Strategies • HSE performance • Workshare • Accepting increased responsibility • Partnering

  24. Strategies • HSE performance • Workshare • Accepting increased responsibility • Partnering • Early engagement

  25. Strategies • HSE performance • Workshare • Accepting increased responsibility • Partnering • Early engagement • New technologies

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