The Role of Innovation in Construction Services Procurement Intelligence

Posted by Manisha S on March 14th, 2024

The construction services category is expected to grow at a CAGR of 11.8% from 2023 to 2030. With technological advancements in the construction process, rising investments by governments toward economic infrastructural development, and green building initiatives, the construction industry has evolved which has resulted in rising construction services. Service providers are focusing on adopting new technologies such as 3D printing, Augmented Reality (AR), Virtual Reality (VR), helmet revolution, and various construction software. Hard hats have been one of the trends around construction sites for the safety of workers. For instance, HexArmor developed a helmet, Kinetix, which could reduce the impact by up to 40% on the head and neck.

The construction sector, like numerous other industries, is experiencing a significant transformation through IoT technology. By integrating connected devices, machines, and sensors, construction sites can greatly enhance their efficiency and safety. Intelligent decision-making processes, predictive maintenance, and real-time data monitoring contribute to this positive shift.

Worker well-being can be affected by labor shortages as well. When companies attempt to fill their labor gap by providing training and upskilling opportunities to new talent, they face the challenges associated with having a less experienced workforce. This can lead to an increase in on-the-job accidents and injuries due to mistakes or poor judgment. Furthermore, construction companies striving to accomplish more with fewer workers put additional pressure on their employees, leading to potential issues such as rushing through work, taking shortcuts, or working longer hours

Technology-based companies are taking initiatives to streamline the way construction service providers operate, such as:

• In May 2023, Canvas a San Francisco-based construction robotics company partnered with USG Corp. to leverage technical advances such as onsite robotics from Canvas, and advanced building materials from USG.

• In March 2023, Sensat, a construction digital twin company, developed an integration along with Autodesk Construction Cloud to enable construction teams to send files from Autodesk Docs to Sensat for user visualization of key construction documents.

Drones have evolved into indispensable tools within the construction sector, providing vital benefits to the industry. Their ability to provide precise insights, high levels of accuracy, and real-time progress reports greatly enhance communication among designers, architects, builders, and client stakeholders. 

Order your copy of the Construction Services Procurement Intelligence Report, 2023 - 2030 , published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Construction Services Sourcing Intelligence Highlights

• Construction service buyers, such as real estate developers, governments, and private clients, can significantly impact the construction service market. The bargaining power of buyers will depend on the number and size of projects undertaken by the builder. The builder with 4-5 big projects will have an upper hand in bargaining as compared to builders with some mid-sized projects.

• Raw materials, labor, machinery, equipment, transportation, office rent, and legal charges are some of the costs incurred in construction services.

• Engaging an external construction team could potentially yield greater cost savings compared to a conventional approach i.e., relying on own employed team. Whether you opt for part-time supervision or full-time outsourcing, these contractors operate on an hourly payment basis.

List of Key Suppliers 

• Bechtel Corporation

• Fluor Corporation

• DPR Construction

• Kiewit Corporation

• STO Building Group

• The Walsh Group

• Skanska

• Clark Construction Group, LLC

• AECOM

• Holder Construction Group, LLC

Browse through Grand View Research’s collection of procurement intelligence studies:

• Commercial Real Estate Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Personal Protective Equipment Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Construction Services Procurement Intelligence Report Scope

• Construction Services Category Growth Rate: CAGR of 11.8% from 2023 to 2030

• Pricing Growth Outlook: 7% - 8% (Annually)

• Pricing Models: Service-based pricing, price for services offered, competition-based pricing

• Supplier Selection Scope: End-to-end service, cost and pricing, compliance, service reliability, and scalability

• Supplier Selection Criteria: Types of building, quality, number of services offered, client relationship, track record and reputation, regulatory compliance, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Like it? Share it!


Manisha S

About the Author

Manisha S
Joined: August 2nd, 2017
Articles Posted: 257

More by this author