Buzzy construction tech startups could see their values balloon to Silicon Valley levels. Here’s where McKinsey is seeing the biggest opportunity.
- A new McKinsey report says that $265 billion in new or shifting profits are at stake as the construction industry invests more in technology.
- This transformation, already underway, has been accelerated by the coronavirus crisis, with 50% of the construction experts surveyed by McKinsey saying they’ve increased their investment in technology since the virus hit.
- While the changes will disrupt the whole construction value chain, the biggest impacts will be on the contractor and subcontractor labor field, design and engineering, and material production and logistics.
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A $265 billion pool of annual profits is up for grabs for construction companies that invest technology and digitalization, according to a new report from McKinsey Global Institute.
This shift, already underway, has been accelerated by the coronavirus pandemic, and the unprecedented amount of remote work that followed.
The report, published Thursday, found that 40% to 45% of construction incumbents’ value added in certain segments, such as design and engineering or actual contracting, is at risk in the face of increasing tech adoption. The report estimated that players that “move fast and manage to radically outperform their competitors could grab the lion’s share of the $265 billion …continued .
[Source: Business Insider]