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The construction industry consistently ranks as one of the largest industries in the world. Yet it is in danger of falling behind other sectors, hampered by two decades of anemic labor-productivity growth as compared to other industries, a lack of true innovation, and its fragmented nature. In some cases, productivity growth in construction lags behind the economies in which they operate.

According to McKinsey Global Institute’s “Reinventing Construction: A Route To Higher Productivity” report, “construction sector labor-productivity growth averaged 1 percent a year over the past two decades, compared with 2.8 percent for the total world economy and 3.6 percent for manufacturing.”

“Absent change, global need for infrastructure and housing will be hard to meet,” the report adds. 

The 20-page executive summary found that proactive steps in seven specific areas could significantly increase productivity, including a tenfold productivity boost if the industry transitioned to a “manufacturing-style production system.” 

While the executive summary paints a somewhat grim picture of the current state of construction, the possible solutions, if implemented, could breathe new life into an industry that hasn't experienced meaningful productivity gains in decades.


To learn more about how construction can adopt new strategies and turn around its productivity gap, download the report.

McKinsey & Company

Modular Construction: From Projects to Products

Consulting firm McKinsey & Company examines the origins of modular construction and the potential impacts widespread adoption would have on the construction industry. 

This comprehensive analysis discusses important topics in modular construction including:

  • Comparisons of the modular construction process to that of traditional construction
  • The opportunities for savings 
  • A breakdown of the use of off-site housing around the world

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McKinsey & Company

Imagining Construction's Digital Future

The global consulting firm McKinsey & Company explains how the construction has become one of the least digitized industries.

This report examines several key benefits to digitalization including improvements to:

  • Surveying
  • Information modeling
  • Collaboration
  • Analysis
  • Future-proofing

Free Download

Ernst & Young

Technological Advancements Disrupting the Global Construction Industry

Ernst & Young examines the world’s rapid transformation from manual processes to digital technologies is empowering the construction industry.

Construction companies are now provided with unprecedented levels of transparency, choice and convenience. With enhanced capabilities, there is an increased demand for higher quality, greater safety and timely completion of projects. This influx of technological solutions is mitigating risks and streamlining the building production process. Digital innovations and megatrends continue to evolve and shape the future of the construction industry.

This research provides a high-level overview of the potential future state of the construction industry.  It focuses on three core areas:

  • design-oriented digital technologies
  • industrialized construction advances
  • construction automation

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