McKinsey’s Next Normal
The latest McKinsey report is a great examination of how the current global events are accelerating change within the construction industry and its broader ecosystem. Titled ‘The Next Normal in Construction,’ the report describes a fragmented, risk-averse industry that has typically underperformed in terms of productivity growth, digitalization and profit, compared to other industries. It goes on to say that, in conjunction with the Covid-19 pandemic, the combination provides opportunities for already existing disruption in the industry to be bolder, strategic and begin to define what the resulting normal is going to look like.
The report is a comprehensive study of the current and future construction industry ecosystem - the largest industry in the world, and well worth the read, but what caught our attention at Voyansi is the similarity in the vision of how this next stage will play out...
The industry represents ‘13 percent of global GDP, construction has seen a meager productivity growth of 1 percent annually for the past two decades.’ This highlights the challenges that the typical project-based approach continues to serve up time and time again, project by project. So while there are advancements in single-threaded concepts like modularization and sustainability, the efficiencies in the information feedback loop are well and truly opportunities are missed.
So how are we going to do it? First, we ditch the documents*, implement agnostic data models, connect owners to the customer-centric business models of the future, and everyone in between. Sound simple? It’s not, but get in touch with the Lab to find out how we can get you prepared for the next normal.