The civil construction services category is expected to grow at a CAGR of 5.9% from 2023 to 2030. The Asia Pacific region accounts for the largest category share as there is increasing domestic demand, stable labor markets, a rapid rise in disposable income, and ongoing policy assistance. Low inflation is also encouraging a steady flow of real income in many nations. Huge investments in infrastructure by the public and commercial sectors are another important driving factor.
A number of companies in this category are utilizing construction technology to build homes off-site using 3D, virtual modeling, and robotics, which alleviates a number of labor shortages and reduces carbon emissions. Developers and contractors are using cutting-edge technologies to evaluate strategic inventory strategies for materials and inputs in order to handle supply difficulties and escalating material costs. Recently, the use of drones in this industry has increased. In the construction sector, they are immensely helpful tools to demonstrate because they may help with taking images and films, allowing for the collection of preliminary data, and offering assessments even in hard-to-reach regions.
The three main cost components of the construction are labor, materials, and tools. There has been a fluctuation in the price of materials in the construction industry, which is increasing the overall cost. Between February 2020 and August 2022, the cost of construction inputs rose by 40.5%. Contractors who have not purchased significant amounts of their goods at normalized rates or incorporated adequate price escalation stipulations in their contracts could suffer from persistent inflation.
Order your copy of the Civil 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
The first global Building Information Modeling (BIM) standards were released by the International Organization for Standardization (ISO) in 2019. The foundation for ISO 19650 is based on the public standard PAS 1192-1 and the British standard BS 1192. According to ISO, it will help to decrease construction costs by 22%. Further, it will assist in gathering information about structures and civil engineering projects that are being organized and digitalized, including BIM (building information modeling).
According to a PwC estimate report of 2019 by the ISO standard of BIM, the production of the construction sector is expected to rise by 85% to USD 5.5 trillion by 2030. For instance, the Royal HaskoningDHV firm in the Netherlands has achieved ISO 19650 certification, enabling architects, engineers, and construction professionals to plan, design, and manage building projects more effectively. The industry needs a global framework that enables collaboration across projects and national boundaries as it gains popularity.
Finding the correct construction materials is an essential stage within the sourcing of construction services. It is necessary to consider factors including initial and ongoing costs, strength, visual appeal, life cycle analysis, and the ability to recycle, reuse, or dispose of the materials at the end of their useful lives. Materials that are sustainable don't affect the present or the future environment. Companies must organize the procedure, go through the design structures, comprehend the materials required for the construction project, figure out how much is required, and look for reliable suppliers who can match their requirements. A major determining factor in the construction project is the budget. Both a project-wide budget plan and individual budgets for each requirement are necessary. The cost of transportation, overhead, transit insurance, taxes, and the cost of loading and unloading at a construction site must all be taken into account when purchasing building materials.
The most preferred Asian countries to source construction materials are China, Vietnam, and India. Many Asian nations have developed into significant producers and exporters of various building materials to Europe, and the U.S. China, Vietnam, and India are just a few examples of Asia's well-known manufacturing nations. These nations are less expensive to operate and have lower labor costs than Western nations. As a result, Asia can produce and trade building materials at a very low cost, which other areas find difficult to match. Some of the other factors include the availability of specialist construction supplies. Numerous businesses in Asia have successfully created and produced specialized building materials, including energy-efficient insulation, green building materials, and high-strength concrete.
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Civil Construction Services Procurement Intelligence Report Scope
• Civil Construction Services Category Growth Rate: CAGR of 5.9% from 2023 to 2030
• Pricing growth Outlook: 8-12% (Annually)
• Pricing Models: Cost-plus pricing
• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier Selection Criteria: By End-use (Rail & Transit, Bridges & Roads, Water/Wastewater, Mining/Infrastructure, and Ports & Airports), Types of construction software, Technical specifications, Operational capabilities, Regulatory standards and mandates, Category innovations, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Key companies
• AECOM
• Balfour Beatty
• Bechtel
• Eiffage
• Hochtief
• Jacobs Engineering Group Inc.
• PCL Constructors Inc.
• Skanska
• United States Army Corps of Engineers
• Vinci SA
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
