In 2020, we will see a continuation of last year’s move towards radically more efficient construction operations. Some of this will be due to digitalization of business processes, but real gains will have to do with technology used to change the business processes themselves.
And we are not talking about small, incremental changes in efficiency.
Construction productivity lags so far behind other industries that to catch up, the industry must adopt, for the first time, enterprise-wide technology that will reduce timeline and budget failures, eliminate non-value-added work, compress timelines and let contractors deliver more value to asset owners with fewer resources.
If contractors fail to adapt, the industry will still be ripe for innovation and contractors will be at risk of competition from new entrants to the market. It is therefore reasonable to forecast that other entrants, including net-new construction players, manufacturing companies, or major corporations like Amazon or IKEA, will carve out market share in the business, ousting apparently secure incumbents.
Prediction 1: Those industry challengers that embrace digital change will enjoy increased productivity through 2025
Prediction 2: Offsite manufacturing will grow by 50% between 2020-2023
Prediction 3: The challengers are coming and existing market positions will see a shake up
Above: PepsiCo food, snack, and beverage product line-up/Source: PepsiCo PepsiCo turned to tooling with 3D printing...