The Growing Need for Digital Transformation in the Construction Industry: Insights from Ashish Aggarwal

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THE GROWING NEED FOR DIGITAL TRANSFORMATION IN
THE CONSTRUCTION INDUSTRY
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The Indian construction industry is experiencing
a boom, driven by the soaring demand for housing
and infrastructure development. However, this
growth comes with its challenges, particularly
concerning the consumption and pricing patterns
of construction materials. Rising material costs,
supply chain disruptions, and inflation are
affecting the prices of construction materials,
which account for a significant portion of total
construction costs. Despite these price
increases, consumers remain uncompromising in
their expectations for high-quality materials. In
response to the changing landscape, the
construction industry is increasingly embracing
digital technologies to streamline processes,
enhance customer experiences, and drive
efficiency. Ashish Aggarwal, CEO of SpaceMantra,
sheds light on the current state of the real
estate industry and how digitization will be the
driving force in the coming years.
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Impact on Consumption and Pricing Patterns of
Construction Materials In 2023, the real estate
market dynamics have shifted significantly. The
unprecedented demand for housing has led to a
surge in construction activities, raising the
need for construction materials. As a result,
developers are faced with the challenge of
increasing prices due to rising material costs,
which constitute a substantial portion of the
total construction expenses. Global supply chain
disruptions and supply-side shocks have further
compounded the situation, causing inflation and
escalating raw material prices. Despite these
cost challenges, consumers are unwilling to
compromise on the quality of materials used,
which can have implications for the rapidly
expanding real estate market.
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Digitization and Handpicking Elements of Dream
Houses The evolving preferences of consumers
have driven the need for personalization and
customization in their dream homes. This trend
has been facilitated by digitization, allowing
customers to handpick each element of their dream
house. While this approach empowers customers to
have more control over the look and feel of their
homes, it can also slow down the procurement
process. However, digital patterns of buying
materials online have emerged as a solution to
streamline this process. Through online
platforms, customers can easily select their
preferences from a wide range of raw material
types, grades, and prices, making the procurement
process quicker and more efficient.
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The Rising Digitization in the Real Estate
Industry The real estate industry has recognized
the necessity for digital transformation to cope
with global supply chain disruptions, increased
competition, and labor shortages. Embracing a
range of new technologies has become a crucial
aspect of modern construction practices. Virtual
design and visualization, VR home tours,
cloud-based software, smart contracts, and big
data algorithms have revolutionized the real
estate process, providing customers with a
seamless and tech-savvy experience. Such digital
innovations not only enhance customer
satisfaction but also lead to increased
efficiency in various aspects of the industry.
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Trends and Predictions for the Construction
Industry The construction industry in India is
projected to grow at an annual rate of 6.2 from
2023 to 2026. This growth can be attributed to a
robust plan of infrastructure projects spanning
various sectors. Government initiatives such as
Atmanirbhar Bharat, aimed at boosting domestic
industries and MSMEs, and the Pradhan Mantri Gati
Shakti National Master Plan, driving economic
growth through infrastructure development, are
expected to attract substantial investment in the
construction industry.
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The Road Ahead SpaceMantra, under the guidance
of Ashish Aggarwal, is committed to building a
comprehensive eB2B platform that will unify the
highly fragmented and unorganized construction
industry. The company is focused on strengthening
its vendor base by establishing direct ties with
manufacturers and brands, which will enable them
to offer a wide product range at competitive
prices to consumers. Furthermore, SpaceMantra is
actively working on providing solutions to
longstanding procurement challenges in the
industry. In the future, the company aims to
expand its customer reach by offering integrated
services to address operational challenges
effectively.
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The Indian construction industry is witnessing
unprecedented growth, driven by the surge in
housing demand and infrastructure development.
However, rising material costs and supply chain
disruptions have presented challenges to
developers, impacting the prices of construction
materials. In this dynamic landscape, the
adoption of digital technologies has become
imperative for the construction industry to
enhance efficiency, improve customer experiences,
and streamline processes. As we move into the
future, the industry can anticipate a continued
emphasis on digitization to drive progress and
meet the evolving demands of consumers.
SpaceMantra, under the leadership of Ashish
Aggarwal, is actively contributing to the digital
transformation of the construction industry,
facilitating a seamless and customer-centric
approach to construction projects.
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THANK YOU
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