Welcome to the fourth edition of the 2018 FMI Quarterly. This issue of the Quarterly highlights some key innovations and transformations that are taking place across today’s built environment and sheds light onto this seemingly quiet yet pervasive transformation.
Memorable Quotes From The Video:
Now when we talk about innovation and transformation, we’re not talking about changes that are happening at an equal pace across all segments of the industry. Instead, these transformative changes are impacting certain segments, markets and specific geographies in different ways—in some cases, transformation is both rapid and significant. In short, we are witnessing in real time how industry stakeholders are fundamentally changing the way they assess, conduct and complete projects across the entire engineering and construction (E&C) spectrum.
For example, one article in this issue of the Quarterly deals with what we refer to as the “Amazon Effect.” As Amazon’s business-to-business commerce platform, Amazon Business continues to make headway in the building products distribution industry; the magnitude of its push is unprecedented. In the article, we examine how building products manufacturers (BPMs) are evaluating how offsite construction and new entrants into the industry are impacting how they think about what they’re building, where they build it, and how they supply their customers with the products they need to get their projects completed.
In another article, we emphasize how the E&C industry must start leveraging the huge sets of data that we’re creating daily—and then put those data sets into effect using actionable intelligence. Our world is producing more data than ever—roughly 2.5 quintillion bytes of data every day. With so much data being created and the use of data analytics starting to gain traction in E&C, understanding what big data is and how your organization can leverage it to improve business processes is becoming an increasingly vital aspect of doing business.
Also in this issue, one of our investment bankers highlights the growing trend of an increased amount of merger and acquisition activity across construction technology firms in the E&C space. Over the last decade alone, more than $10 billion has been allocated to funding construction technology. Most of that money came through early-stage venture capital deals. As construction technology companies are maturing, we’re seeing larger acquirers stepping in and making full (or at least majority) acquisitions.
Another piece looks at the growing number of E&C firms that are turning to unconventional leadership transition methods whereby the senior leaders pass the baton to a few different individuals (versus just one who then leads the enterprise). This “shared leadership” concept is helping leaders address many of the complex and ambiguous challenges E&C owners face today.
We hope you find these articles around technology innovation and the rapidly changing E&C industry stimulating, providing food for thought on how to participate in this transformation and develop an even more innovative firm than the one you’re running today. As we close out 2018 and look forward to another year of positive business momentum in 2019, we encourage you to test out some of the innovative ideas that you’ll find within the pages of this issue of the Quarterly.