Why 2025 is the tipping point for digital transformation in construction

The construction industry is known for its complexity. Every project involves shifting requirements, tight deadlines, multiple stakeholders, and constant pressure on cost and safety. For decades, firms have managed with fragmented systems, paper trails, and disconnected processes. But the sector has reached a breaking point.

2025 marks the year when digital transformation stops being an optional extra and becomes a critical step for survival and growth. Research shows that 63% of construction and engineering companies are planning to adopt a new enterprise resource planning (ERP) platform within the next one to two years. This signals a profound shift across the industry, as leaders realise that outdated systems are no longer fit for purpose.

Platned, as a trusted IFS Gold Services Partner, is working with firms across the world to accelerate this shift. By replacing legacy technology with IFS Cloud™, Platned helps companies gain visibility, control, and agility across the entire project and asset lifecycle.

 

Why now? The pressures forcing change

Construction firms are facing pressures on all sides. Costs of materials are volatile. Skills shortages are worsening, with experienced workers retiring and younger talent demanding modern digital tools. Sustainability is no longer just a nice-to-have, but a requirement as governments and investors demand accountability on carbon and waste. At the same time, clients are asking for smarter infrastructure that can adapt to future needs, not just meet today’s standards.

Legacy technology makes it harder to meet these challenges. Older systems do not talk to each other, which means data is scattered across departments. This slows down decision-making and hides problems until it is too late. Manual processes increase errors, eat up valuable time, and leave firms vulnerable to financial risk. The industry can no longer afford these inefficiencies.

 

The rise of digital maturity

Digital maturity is accelerating. Companies are adopting integrated systems to centralise data, standardise workflows, and improve visibility across projects. This is not just about keeping up with technology trends. It is about gaining the control needed to manage projects effectively and profitably.

Platned supports construction businesses through this journey. With IFS Cloud™, project managers can see budgets, schedules, and resource allocation in real time. Finance teams can forecast cash flow with greater accuracy. Executives can monitor risk and compliance across the entire business. This transparency helps projects finish on time, on budget, and with fewer surprises.

 

New revenue models and diversification

Another reason 2025 is a tipping point is the way firms are diversifying. Traditional project-by-project revenue is unpredictable, often leaving businesses exposed to economic cycles. Many organisations are moving into services such as facilities management, maintenance, and modular or prefabricated construction. These offer repeatable revenue streams and more stable growth.

Platned helps enable this diversification by deploying ERP platforms that go beyond accounting. IFS Cloud™ manages the full asset lifecycle, from design and build to maintenance and eventual refurbishment or disposal. Without the right technology, diversification strategies will struggle to deliver.

 

The role of Industrial AI and automation

Artificial intelligence is no longer science fiction. More than half of construction and engineering firms say they will introduce AI into their operations in 2025 and beyond. The opportunities are vast. AI can support predictive maintenance, preventing costly equipment breakdowns. It can analyse past projects to improve planning accuracy. Machine learning can automate routine tasks, freeing up skilled workers for higher-value activities.

Platned helps customers bring these capabilities to life. IFS Cloud™ includes embedded Industrial AI, which uses data to power smarter forecasting, automated compliance, and more resilient project planning. Automation also plays a vital role. With fewer skilled workers available, automated workflows reduce manual effort, speed up approvals, and improve compliance.

 

Standardisation and sustainability

Standardisation will also be a major driver of change. By 2025, 80% of construction firms are expected to prioritise standardised processes, data, and materials. This consistency is essential when working across multiple regions or joint ventures. It reduces errors, improves efficiency, and ensures quality.

Sustainability is another defining factor. Over 60% of companies will embed sustainability into their digital transformation strategies by the end of 2025. Modern cloud systems can track carbon footprints, monitor energy use, and manage waste in real time. Platned helps firms use these insights to demonstrate progress against ESG goals, while also winning contracts where sustainability performance is a selection criterion.

 

Overcoming barriers to adoption

Of course, transformation is not easy. Many CIOs and business leaders hesitate because past technology projects have failed to deliver a clear return on investment. Others worry about resistance from staff or the cost of training.

But with Platned’s guidance, these barriers can be overcome. Today’s digital platforms are built to be flexible and composable. Firms can start small, adding modules as needed, rather than committing to a massive upfront change. User-friendly mobile apps and intuitive dashboards make adoption easier for workers at every level. Training can be phased, with teams testing new tools in controlled groups before wider rollout.

The key is to lead change effectively. Platned works closely with leaders to communicate why transformation matters and ensures that employees understand how it will make their jobs easier. Without buy-in from the workforce, even the best technology will fall short.

 

A year of decision

All signs point to 2025 as the moment when firms must act. Those who delay risk falling behind competitors that are already modernising. The benefits are clear. Research shows that companies using modern ERP platforms can achieve up to a 414% return on investment over three years, with payback in as little as 11 months. Efficiency gains, reduced errors, better decision-making, and stronger financial control all add up to a more resilient business.

For the construction industry, digital transformation is no longer about future possibilities. It is about immediate survival and long-term competitiveness. With Platned and IFS Cloud™, companies have the tools, expertise, and support to make transformation a reality. 2025 is the tipping point because the tools are ready, the need is urgent, and the industry is prepared to embrace change.