10 min read

Why 2025 is the tipping point for digital transformation in construction

Platned

Platned

16/10/2025

platned-blog

The construction industry has always been one of the most complex business environments. Every project brings unique requirements, multiple stakeholders, demanding schedules, and constant pressure to control costs and protect worker safety. For decades, many firms have managed with spreadsheets, paper trails, and outdated systems that do not connect. That way of working is no longer sustainable.

2025 is the tipping point for digital transformation. A global study of 825 construction and engineering leaders found that 63% of companies plan to adopt a new enterprise resource planning (ERP) platform in the next one to two years. This signals a major shift as the industry realizes that legacy systems are holding back progress.

Platned, an IFS Gold Services Partner, is working with firms across North America to help them replace outdated tools with IFS Cloud™. The result is greater visibility, control, and agility across projects and the entire asset lifecycle.

 

Why 2025 is different

Several forces are converging to make this the year when construction leaders can no longer delay transformation.

  • Rising pressures: Material costs remain unpredictable. The skilled labor shortage is intensifying as older workers retire and younger generations expect digital tools. Clients are also demanding stronger sustainability performance.
  • Digital maturity: More companies are adopting integrated platforms that centralize data, standardize processes, and give leaders real-time visibility. This reduces delays, prevents errors, and creates more predictable project outcomes.
  • Diversification: Firms are expanding into services such as facilities management, long-term maintenance, and modular or prefabricated construction. These business models require digital platforms that manage the full asset lifecycle, not just project accounting.
  • AI and automation: More than half of construction companies plan to bring AI into operations in 2025 and beyond. From predictive maintenance to automated compliance, AI is making projects smarter, safer, and more efficient.
  • Sustainability: By the end of 2025, over 60% of firms will embed sustainability into their digital transformation strategies. Cloud-based systems make it possible to track carbon emissions, energy use, and waste in real time, which is vital for meeting ESG requirements and winning new contracts.

The rise of digital maturity

Digital maturity is accelerating across the sector. Companies are moving away from siloed applications and paper-heavy processes toward fully integrated solutions. A modern ERP backbone provides a single version of the truth that supports both day-to-day project execution and long-term business growth.

With Platned and IFS Cloud™, construction leaders can unite financial management, project control, procurement, and compliance in one platform. Project managers get real-time visibility into budgets and schedules. Finance teams can forecast cash flow more accurately. Executives can track risk, ESG performance, and compliance across the business. That kind of transparency helps projects finish on time, on budget, and with fewer surprises.

 

Supporting new revenue models

Another reason 2025 marks a turning point is diversification. Traditional project-based revenue is unpredictable and exposes firms to economic cycles. More organizations are moving into recurring services such as facilities management, rental models, and modular construction. These provide steady cash flow and more predictable growth.

Platned helps firms adapt to these models by deploying ERP platforms that support the full asset lifecycle. IFS Cloud™ allows companies to manage design, build, operate, maintain, and eventually refurbish or decommission assets within a single system. That level of lifecycle control is essential for creating new revenue streams while keeping risks under control.

 

The role of Industrial AI and automation

Artificial intelligence is no longer an experiment. More than half of construction and engineering firms expect to introduce AI into their operations from 2025 onward. AI can analyze past projects to improve planning, support predictive maintenance to reduce equipment downtime, and automate routine processes such as inspections and reporting.

Platned enables customers to take advantage of these opportunities through IFS Cloud™, which includes embedded Industrial AI. By turning data into insights, firms can improve forecasting, automate compliance, and strengthen project planning. Automation plays a critical role too. With fewer skilled workers available, automated workflows help reduce manual effort, speed up approvals, and ensure consistency across projects.

 

Standardization and sustainability

Standardization is becoming another major driver of change. By 2025, 80% of construction firms are expected to prioritize standardized processes, data structures, and materials. This level of consistency is especially important for organizations operating across multiple regions or in joint ventures. Standardization reduces errors, increases efficiency, and creates a stronger foundation for growth.

Sustainability is also becoming embedded into digital strategies. Cloud-based systems allow real-time tracking of carbon footprints, waste management, and energy performance. Platned helps North American firms use these insights to demonstrate progress toward ESG goals, while also strengthening bids for new contracts where sustainability is a deciding factor.

 

Overcoming barriers to adoption

Despite the clear benefits, many firms hesitate to modernize because of past experiences. Some leaders remember projects that failed to deliver ROI, while others worry about staff resistance or the cost of training.

Platned works with construction leaders to address these concerns directly. With IFS Cloud™, transformation does not have to mean a disruptive, all-at-once change. Companies can start small, add functionality when they are ready, and expand at their own pace. The platform is intuitive, with mobile apps and dashboards designed for ease of use, which makes adoption easier across all roles.

Training is phased, with small user groups testing the system before a wider rollout. Platned also helps executives communicate the value of digital transformation, ensuring that employees see how new tools make their work simpler, safer, and more rewarding.

 

A year of decision

The financial case for change is strong. Research shows that companies using modern ERP platforms like IFS Cloud™ achieve up to a 414% return on investment over three years, with payback in as little as 11 months. Other reported benefits include faster project reporting, shorter budget cycles, reduced risk, and higher staff efficiency.

For construction leaders, 2025 is the year to act. Those who delay risk falling behind competitors who are already investing in digital maturity. With Platned and IFS Cloud™, firms can strengthen financial performance, diversify revenue streams, and build more resilient operations.

Digital transformation in construction is no longer about the future. It is about taking control today. The tools are ready, the need is urgent, and the industry is prepared to embrace change. That is why 2025 is the tipping point.

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