Construction and Engineering
The construction industry faces ongoing issues around low productivity and margins, but digital disruption is challenging the status quo. Organizations need to focus on the legacy issues, but also plan for a digital future.
What EY can do for you
The construction industry — one of the world’s top 10 employers — faces growing demand as urbanization accelerates, especially in developing countries. The UN predicts that 68% of people will live in cities by 2050. And, across the globe there’s a growing need for new infrastructure. Despite disruptions from the pandemic, skilled labor shortages continue to threaten the long-term health of the industry, and productivity has not increased for decades. The industry has also been slow to adopt the technologies that are needed for higher productivity and to meet the demands of an increasingly digital world. It’s a critical time — firms must tackle legacy issues, as well as plan for a digital future.
Forward-looking firms, including new competitors, are using construction technology (ConTech) to bridge the productivity gap. Technologies, such as 3-D printing, drones and building information management systems and digital twins, are transforming the industry. They are cutting costs and time, helping construction to be more efficient, and become more sustainable.
ConTech also brings opportunities to streamline your organization — e.g., by improving the efficiency of your supply chain and invoice payments. Also, blockchain has the potential to handle all contractual relationships using concepts such as smart contracts, electronic verification and certification. This not only improves efficiency, but also brings greater transparency of processes, cost savings and accountability.
As the industry becomes more tech-enabled, the need for digital skills is also growing. Organizations need to have the right talent in place to compete.
EY teams provide several services to help clients respond to today’s challenges
- Compliance checks, procurement and competitive bidding: EY teams offer a wide range of services from design and benchmarking against leading practices, to reviews and audits.
- Construction analytics: EY teams help provide insight into contracts, revenue analysis, margin analysis, costs and project anomalies.
- Construction and capital projects: Strengthening control and improving efficiency are key for improving margins. We offer effective risk management and project management services that reduce risk while keeping projects on time and on budget.
- Digital strategies: EY teams help companies build digital into all aspects of their operations and gain a competitive advantage.
- Digital solutions: EY teams have developed two tools to improve back-office efficiency.
- Automated Payments Application Management System improves the invoice payment process by tracking all invoices through the payment process. It helps increase payment accuracy and transparency, as well as quicken payments and cost savings.
- Digital Handshake is designed to help make sure that there is integrity, transparency and shared trust. It provides a single, verifiable source of truth for all legal, commercial and technical documentation, which can only be edited with the approval of all participating parties.
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