1: Industry Problem Identification & Vertical Analysis

Industry Overview

• The global construction industry is valued at approximately $14 trillion (Source: McKinsey Global Institute, "Reinventing Construction: A Route to Higher Productivity", 2017).
• The U.S. construction market alone accounts for about $2.2 trillion (Source: U.S. Census Bureau, 2024 estimates).
• Despite its massive size, construction ranks among the least digitized industries globally.

Major Problems in Construction

Procurement Inefficiencies

• Traditional procurement is time-consuming, error-prone, and opaque.
• Procurement accounts for 30–50% of total project costs (Source: McKinsey, 2023 Construction Productivity Report).

Poor Project Visibility & Tracking

• Contractors often lack real-time data on project status.
• 90% of megaprojects are over budget, and 61% are delayed (Source: KPMG Global Construction Survey, 2023).

Labor Management Challenges

• A shortage of skilled labor and poor workforce management reduces productivity.
• 81% of U.S. construction firms report difficulty filling positions (Source: Associated General Contractors of America, 2024).

Fragmentation & Lack of Standardization

• Construction involves multiple stakeholders with fragmented communication, leading to costly coordination issues.

Low Profit Margins

• Average net margins are thin, around 2–3% (Source: CFMA 2024 Survey).