As is true of so much of our civilisation, construction is evolving at an unprecedented rate. We are embracing the possibilities emerging from innovations around technology, materials and techniques. And we are reacting to challenges including climate change; pressure on space; shortages of resources including construction materials, food, water and fossil fuels; etc.
The roles of procurement and commercial professionals in the construction industry are unsurprisingly also evolving rapidly to keep pace. Here is my take on the experience and skills that procurers and commercial professionals in the construction sector will find grow in particular importance over the next 1-5 years…
1) Digital and Technological Proficiency (including Building Information Modelling (BIM), construction management software, and other technology solutions) – the scale of modern construction together with often tight margins; the potential for enormous fluctuations in cost; and complex, global supply chains mean that maximising efficiency is critical to successful construction. Used well the right technologies can reduce risk, enhance collaboration and communication among stakeholders, drive faster decision-making and reduce delays. Each of these outcomes can help minimise costs.
2) Sustainability and Green Building Skills – even if recent economic challenges have pushed sustainability lower down the industry agenda, a combination of regulation, consumer demand and a sense of responsibility from the construction industry itself are driving the adoption of more sustainable construction. The pressures on resources and the growing evidence that the natural world is under ever-increasing stress, mean sustainability skills will continue to grow in importance.
3) Offsite Construction and Modern Methods such as modular construction – offsite construction methods offer numerous advantages: time efficiencies; cost savings; quality control; flexibility and scalability; reduced site disruption; sustainability; labor shortages; enhanced safety; innovative design opportunities; etc. With pressures on timely delivery, costs and health and safety, as well as scrutiny from local communities and those with environmental concerns, demand is only going to increase for procurement and commercial candidates who are on top of the multitude of offsite construction options and able to successfully integrate them into projects.
4) Project Management and Collaboration – the variety, complexity and specificity of materials and techniques used in construction projects is ever-increasing and requires a corresponding range of specialist suppliers involved, with procurement and commercial professionals needing to work across multiple cultures, regulatory environments and languages. Managing these complex supply chains requires real skill and employers will increasingly value candidates with a track record of delivering materials and components on time and on budget.
5) Data analytics and predictive analytics – every sector of the economy I can think of is exploring how artificial intelligence can improve performance. The data available to modern supply chain and commercial teams is almost limitless, however it is a real skill to understand where data analytics and predictive analytics can add value as well as which data to use and how to use it. With long timelines for construction projects and exposure to global macro-economic forces, there is the potential for companies who adopt the technology and techniques well to achieve real competitive advantage.
6) Regulatory awareness – for supply chain and commercial professionals operating increasingly internationalised supply chains, the conflicting currents of globalisation and protectionism, together with rapid evolutions in technology make regulatory compliance a constantly evolving minefield. Professionals who cannot stay on top or even ahead of ever shifting legislation will quickly find themselves obsolete.