Data analytics. AI (artificial intelligence). Machine learning. Cloud. Edge. There are so many technologies that are reshaping technology in the construction industry. Today, let’s look at how new technologies are impacting ERP (enterprise resource planning) and accounting.
What’s Next for Accounting
Construction accounting software can help construction professionals in several ways. It can track key financial data such as accounts payable, accounts receivable, general ledger, and more. The value here is it houses all the data in one place and makes it easier to make decisions.
The global construction accounting software market is expected to grow from $1.1 billion in 2023 to $2.5 billion by 2030. That means the market is going to leap 10.4% during that time period, according to HTF Market Intelligence Consulting.
Today, there is a greater need for the technology because with a labor shortage, the technology helps reduce manual work. It also keeps certain expenses separate, helping to ultimately track costs. Looking to the future, construction accounting software will continue to advance. Like many other pieces of technology, we will see the rise of AI in software.
What’s Next for ERP
ERP (enterprise-resource planning) has its roots in the manufacturing industry, but at its core it is software that manages processes across key areas of construction such as project management and accounting.
The global ERP software market size was valued at $71.41 billion in 2023, and it is anticipated to grow to $238.79 billion by 2032. This represents a growth rate of 14.4% during the forecast period. In particular, the market here in the United States is anticipated to growth significantly during that time, according to Fortune Business Insights.
One trend to keep an eye on is the increasing popularity of two-tier ERP, which helps enterprises run two merged solutions simultaneously. Fortune Business Insights says organizations are in need of a resilient system at the enterprise level, but also require a complementing solution for subsidiaries or worldwide locations. And due to this, the demand for two-tier ERP is increasing.
One of the big factors contributing to the growth of ERP in general is the need for greater operational efficiency and to streamline business processes. We will also see the rise of data analytics, AI, and machine learning in ERP systems in the future.
The bottomline is the use of software in construction is continuing to grow—and at the same time the technology is continuing to advance, offering new opportunities for increased productivity, accuracy, and safety in construction.
Do you offer a technology solution to the construction industry? Do you want your product to be considered for the 2025 Constructech Top Products awards. Make sure to submit it this week. The deadline is fast approaching.
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