BIM technology as a driving force for E&C
Engineering & Construction (E&C) industry is a cornerstone of the world’s economy with annual revenue of nearly $10 trillion (6% of global GDP).
While being closely connected to productive sector (much of the value creation process of almost any business involves buildings, infrastructure facilities etc.), E&C wasn’t keen on adopting new approaches to conducting business (think of lean approach) and has never undergone a major transformation. Up until now.
Digitalization that already contributed as a trend to almost every industry imaginable in terms of productivity gain and is now entering the E&C premises.
Employing new software applications—all integrated on a central platform of building information modeling (BIM) allows construction sector to substantially increase productivity, manage complex projects in a simpler way, enhance budgets management through substantial cost savings.
According to BCG estimates, within next 10 years annual global cost savings of $0.7 trillion to $1.2 trillion (13% to 21%) in the engineering and construction phases and $0.3 trillion to $0.5 trillion (10% to 17%) in the operations phase would be made possible through full scale digitalization & employing BIM approach on all E&G phases. This goes hand in hand with productivity gains that are estimated to reach 15% to 25% by 2025.
Looking at those numbers, no wonder that not only business are picking on new developments, but government around the world as well are promoting BIM. While UK & USA has made it mandatory to employ BIM in public projects (please, see the picture below), EU has so far just recommended to use it in EU-funded projects.
Our expectation is that, over the next decade, more and more companies will embrace the manifold opportunities offered by digitalization, and productivity across the E&C value chain will boom.