Rising construction activities along with technological advancements in construction are expected to drive the construction services category’s growth

Construction Services Category - Procurement Intelligence

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. 

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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.

Construction Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the construction services category:

• Raw Materials

  • Sand

  • Cement

  • Steel

  • Aluminum

  • Concrete Blocks

  • Others

• Labor

  • Employee Wages

  • Benefits

  • Training

  • Overtime

  • Others

• Machinery

• Equipment

• Transportation

• Office Rent

• Furniture

• Power

• Legal Charges

• Permits

• Insurance

• Others

Raw material, labor, machinery, and equipment cost form the largest cost components of the construction services category.

List of Key Suppliers in the Construction Services Category

• Bechtel Corporation

• Fluor Corporation

• DPR Construction

• Kiewit Corporation

• STO Building Group

• The Walsh Group

• Skanska

• Clark Construction Group, LLC

• AECOM

• Holder Construction Group, LLC