Digital transformation in construction is the future of the industry. However, the construction industry has a long-standing reputation for relying on:
Outdated technologies
Inefficient workflows
Complex ecosystems
Construction now represents 13% of the world’s GDP. But despite robust industry growth, profits have remained flat over the last three decades. This is all about to change. Bold, new digital technologies, strategies, and processes are reshaping the world at tremendous speed. And the construction industry is facing a moment of transformative change.
The fragmented ecosystem that construction enterprises operate in is also being disrupted. A McKinsey report predicts that 40-45% of the industry’s value will be redistributed in a post-COVID world. So construction equipment players should prepare themselves for a new climate filled with game-changing opportunities.
Digital transformation is essential for making the most of these new opportunities. So why are so many construction industry players still moving in the slow lane? And how can construction equipment (CE) businesses punch the digital accelerator to keep pace with the changing landscape?
Digital transformation in the construction industry has been slow. However, recent trends highlight the importance of data, connectivity, and demand-based forecasting:
The global construction equipment market is expected to grow at a rate of 4.7% between 2020 and 2025
Construction equipment rental is becoming more profitable
Aftermarket offerings are an increasing priority
Regulations and customer preferences are shifting
To successfully manage this wave of change, CE players are focusing on becoming more agile, resilient, and customer centric. And they’re going digital to do it.
Here are some of the construction industry trends shaping the future of the Construction Equipment Industry (OEMs, Dealers, and Rentals):
Changing customer expectations: A CE Leader Survey revealed that while 3 years ago scale and productivity were top priorities, now 44% of respondents think that understanding the needs of customers is one of the most critical aspects for future success. B2B customers today expect the same intelligent, personalised, connected experience as B2C customers. The investment in meeting those expectations has been accelerated by COVID-19.
Disruptive technology: Machines are getting smarter and more businesses are automating processes. The IoT, although still in its infancy, offers a glimpse of a rapidly approaching future where connected machines can create new revenue streams for OEMs, dealers, and rental players.
Tougher regulations: Regulations surrounding electrification, health and safety, sustainability, and emissions are making CE players track new requirements and rethink the composition of their fleets.
New business models: Digital transformation in construction has created new avenues for CE players to explore, including data monetisation, fuel optimisation, equipment tracking, uptime-based contracts, and more. Additionally, many CE businesses are focusing on construction equipment rental and aftermarket offerings.
End-end-digitisation and analytics: CE businesses are leveraging the power of digitalisation across the supply chain. This enables them to improve S&OP, optimise their assets, increase collaboration, and provide exceptional B2B2C customer journeys.
It’s clear that the least digitised industry is now knocking at the gates of a new world where:
Data fuels intelligent machines
Processes are more efficient and streamlined
Better-connected workforces are empowered through collaborative tools
Seamless customer journeys are standard
When it comes to digital transformation in construction, choosing the right partner is critical. Salesforce helps construction equipment businesses like Hilti, United Rentals, and Black & Decker generate more revenue through improved marketing, selling, and servicing of machine sales, and aftermarket services. Salesforce helps companies manage their operations and resources more effectively.
Here are some of the ways that Salesforce can help CE businesses capitalise on the digitalisation of the construction industry:
Connect operations: Salesforce can help strengthen supplier and OEM partnerships and drive product innovation while improving operational planning.
Drive commercial excellence: Empower marketing, sales, and service teams to create exceptional omnichannel experiences centred around the customer.
Enable ecosystem collaboration: Equip technicians with data-driven tools they can use anywhere. Improve collaboration with dealers and rental companies to grow revenue and drive customer engagement.
Create value-added business models: Generate and optimise aftermarket revenue streams through new business models like marketplaces, financing options, and data monetisation.
Improve the employee experience: Leverage collaborative tools, introduce self-service options and create learning portals to increase employee satisfaction, productivity, and engagement.
Salesforce can help CE players keep up with digital transformation in construction and better face the future. It can help them drive revenue growth, optimise costs, and improve time to market.
Even the biggest operators in the construction equipment industry are still finding new ways to succeed. Many are turning to Salesforce for help.
Family-run construction firm Hilti used Salesforce to rapidly digitise its communications and sales systems in the wake of COVID-19. It turned to Sales Cloud to provide its sales team with a 360-view of the customer. This enabled them to reach the right customer with the right product at the right time.
Hilti then used Marketing Cloud to craft personalised messages and build better relationships with those customers. In the end, Hilti digitised 95% of their sales systems and customer communications. They completed what was originally set to be a two-year transformation in just six months.
Stanley Black and Decker, maker of smart tools, are using the Salesforce Customer 360 Platform to communicate with their disparate customer groups, enable collaboration across the workforce, and build next-generation apps. The company has also leveraged Service Cloud Lightning to respond to specific customer problems, saving its agents over 6,000 hours a year.
Hilti and Stanley Black and Decker are transforming to put the customer first. And they’re not the only businesses evolving to face the challenges of the next normal.
The digitalisation of the construction industry is leading to big business wins. Yanmar American Corporation digitised its rebate programme and improved its efficiency by 50%. United Rentals using the Salesforce Platform created their MyMaps app to capture more business and drive collaboration across the sales teams.
From smart manufacturing and supply chain management to seamless cash-to-order processes and enhanced aftermarket service, digital transformation in construction is creating new opportunities across the entire value chain.
The digitalisation of the construction industry may have been a long time coming. Its impact is already being seen far and wide. For construction equipment businesses looking to not just keep up with the competition but forge a better future, the time to act is now.
To see how today’s construction industry players are adapting to crisis and finding new ways to sell, download our free report, Trends in Architecture, Engineering and Construction.
