Read Arma’s view on why construction software has remained resilient in the face of Covid-19, seeing significant and accelerating deal flow, on Forbes here.
Construction software has thrived despite the effects of Covid-19. Hg’s acquisition of Trackunit, the merger of Sogelink and Geodesial Group backed by Keensight, Procore’s recent IPO, Schneider Electric’s takeover of RIB Software, the acquisition of a minority stake in Aareon by Advent International, and TA Associate’s sale of thinkproject to EQT, are all testament to this. But why has this happened here when other sectors have struggled in their post-Covid recovery?
Construction software has thrived despite the effects of Covid-19.
Firstly, both construction and technology have not been as disrupted by the pandemic as industries such as travel, hospitality, and retail. Secondly, rapid digitalisation, the use of standardised hardware, and the adoption of increasingly sophisticated workflow management software
Rapid digitalisation, the use of standardised hardware, and the adoption of increasingly sophisticated workflow management software across different phases of the built environment lifecycle have all been key to driving the uptake of construction software.
On top of this, the construction space has become far more digitised. Substantial digital innovation has been seen in project management and the execution stages of construction projects, such as through the creation of combination platforms, which allow builders to track data throughout the construction process and ensure continuity through a centralised platform.
A key enabler in construction has also been the availability of standardised and economical hardware such as Internet-enabled mobile devices, which allow workers to track progress on the construction site and receive real-time alerts.
A key enabler in construction has also been the availability of standardised and economical hardware such as Internet-enabled mobile devices, which allow workers to track progress on the construction site and receive real-time alerts.
Finally, productivity has been boosted by the proliferation of sophisticated workflow automation tools. New platforms have been created to manage complex projects and maintenance of assets and infrastructure. For example, Thinkproject has created products overseeing all phases of a construction projects, from initial design to operations.
Construction technology has performed particularly strongly over the past year, continuing to be robust as the global economy recovers and markets navigate uncertainty, and we anticipate further acceleration of M&A in this sector in the future.