Page 4 - Report- Procure 2020 FMi INDUSTRY
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2020 FMI INDUSTRY REPORT
Preface
Across the globe, while construction projects The construction industry today is both booming
continue to grow in both scope and complexity, and fiercely competitive. In this climate, status
labor productivity is flatlining. According to quo business processes are no longer valid. To
McKinsey Global Institute, builders’ productivity keep pace and sustain profitability, firms must
growth worldwide has averaged only 1% growth find new ways to increase efficiencies, improve
per year over the past two decades, compared productivity, and increase margins.
to 3.6% growth in the manufacturing sector. In
the U.S., construction productivity has actually The good news is that after a much slower
dropped by half since the late 1960s. start than most industries, construction is
finally joining the digital revolution. Investors,
While productivity is stagnating, the labor seeing a multi-trillion-dollar industry poised for
shortage is intensifying, and the cost of both disruption, have been pouring billions of dollars
materials and labor is rising. into construction technology. In the first half
of 2018 alone, venture capitalists injected a
These industry challenges are being magnified whopping $1.05 billion into global construction
by global migration from rural to urban settings. technology startups. As a result, there has been
In fact, the population of global urban areas is a sharp rise in the number of construction-
increasing by 200,000 people per day. A report specific solutions available on the market.
from the United Nations predicts that by 2050,
the global population living in cities will have Construction firms are moving fast to implement
increased from 55% to 68%. That translates a range of innovative software solutions. But
to a need for everything from new housing and merely purchasing software is not enough. In
schools to office buildings and infrastructure— order to achieve the transformational change
for 2.5 billion people. Put simply, we will need to we’ve seen across other sectors, firms must
build “an entire New York City every month” for invest in a technology partner that will ensure
the next few decades to keep up. the software is leveraged effectively.
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