Heavy industrial projects, whether bio-fuels, utilities, forest products or mining / metallurgy, are more and more capital intensive.While the capital intensity in itself makes generating satisfactory returns on investment challenging, it may lead to industry behaviours that are detrimental. One of the effects of the capital intensity is the avoidance of risks as the cost of failure is enormous.
The fear of failure may breed:
- Risk aversion and discourage technology and market innovation
- Gold-plated design, padded budgets and incorporation of unnecessary flexibility and redundancy
KSH understands the challenges associated to capital intensity and offers experienced EPCM services as well as services to EPC projects.