Major opportunity for progressive construction businesses

Photo by Toni Hukkanen on Unsplash

A recent major study by McKinsey has highlighted nine major trends that are coming together to change the way the construction industry works. 

The sector is the world’s biggest, worth an estimated $11 trillion US dollars each year. However, things have barely changed over the last 20 years, with just 1% improvement in productivity annually, despite the massive shifts that have occurred in other sectors over that time. 

At stake is a forecast of $265 billion in profit – about 45% of incumbent value. 

The opportunity is there for those organisations that are capable of adopting more agile ways of working. Trends like digitalisation, specialisation, lean assembly and just-in-time delivery are just some of the empowering factors for smart construction businesses that are now being realised. 

As one demonstration of the changes, modular construction grew by 50% in the US between 2015 and 2018. The evidence we have seen in our own business growth – all be it a microcosm of the sector overall - suggest that this shift is continuing to escalate.

With a backdrop of cost and time overruns being the norm in construction, the McKinsey article predicts that kind of change is now being fast-tracked by the Covid crisis.

To read the article in full click here. 

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