Part 1 in three-part series about weather analytics and construction decisions

In the McKinsey&Company Capital Projects & Infrastructure article “How analytics can drive smarter engineering and construction decisions,” authors Garo Hovnanian, Kevin Kroll, and Erik Sjödin identify applications that illustrate how engineering and construction (E&C) companies are embracing data-driven solutions and strategizing future initiatives. Data-driven solutions, such as weather analytics, are transforming other industries such as agriculture to improve outcomes and reduce risk — construction is now.

Hovnanian, Kroll, and Sjödin describe how the construction industry faces major productivity challenges — with less than one percent annual labor productivity improvement. In comparison, the global economy averaged 2.8% annual labor productivity improvement year over year for the past two decades, and the manufacturing sector averaged 3.6%. With the responsibility for project delivery, engineering and construction companies are “…well-positioned to drive changes…” to close the productivity chasm with other market sectors in the global economy.

Leveraging treasure troves of disparate data already collected, but regrettably siloed by engineering and construction companies, advanced analytics, such as weather analytics, reveal critical insights that help stakeholders make better-informed decisions faster — versus relying on guesswork. Further, advanced analytics help decision-makers assess the performance of an individual project through to the performance of a portfolio of numerous sites distributed across multiple business units and geographic regions.

More in the next blog post about weather analytics and construction decisions…

About the authors

Garo Hovnanian is a vice president of major projects in McKinsey’s Philadelphia office; Kevin Kroll is a consultant in Chicago, and Erik Sjödin is a partner in Stockholm.

(Source: Hovnanian, Garo, et al. “How Analytics Can Drive Smarter Engineering and Construction Decisions.” McKinsey&Company Capital Projects & Infrastructure, McKinsey Insights,

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