Alberta, Canada, September 3, 2025
News Summary
Construction and industrial operators are increasingly adopting procurement automation to tackle skilled labor shortages, volatile material pricing and supply‑chain disruptions. Companies are replacing spreadsheets and ad hoc processes with connected procurement systems that centralize spend data, speed invoice reconciliation and improve supplier management. Large industrial builds are pairing automation design with procurement strategies to lower risk and standardize repeatable modules, while oilfield and MRO markets embrace specialized RFx and PO tools to shorten sourcing cycles. Successful adoption requires process redesign, talent development and ecosystem integration to shift procurement from transactional work to strategic category management.
Procurement automation emerges as a strategic fix for construction’s tight labor, inflation and supply-chain squeeze
Construction and industrial projects are increasingly turning to procurement automation to manage labor shortages, soaring material costs and fragile supply chains. Recent project partnerships and product rollouts show procurement technology moving from a back-office convenience to a core operational capability that can protect schedules, margins and emissions goals.
Top-line developments
A major industrial automation supplier has signed a leveraged procurement agreement to provide automation systems for a large ethylene plant expansion and retrofit centered on achieving net-zero Scope 1 and 2 emissions. The work includes expanding distributed control systems, supplying hardware and designing control cabinets under a “design once, build many” approach intended to reduce risk and standardize future builds.
Separately, software vendors serving energy and industrial operations are pitching lightweight, industry-specific procurement tools that replace emails and spreadsheets with single-application workflows for requesting quotes, comparing suppliers and tracking spend.
Why the shift matters now
Multiple forces are compressing margins and increasing operational risk across construction and EPC (engineering, procurement and construction) projects: ongoing labor shortages, daily material-price volatility, tariff shifts, geopolitical tensions and climate-driven supply disruptions. The global EPC sector is projected to approach $974.4 billion by 2025, and the construction procurement software market is growing faster than the broader sector, valued at about $851.3 million in 2023 and expected to expand at a compound annual growth rate north of 8.5% through 2032.
Measured inefficiencies that automation targets
Surveys and industry research paint a clear picture of avoidable losses tied to manual procurement. One survey indicates that nearly nine in ten procurement teams see rising errors linked to manual vendor management, with nearly half of procurement mistakes caused by manual data entry. Another analysis estimates that roughly one-third of project delays can be traced directly to procurement failures such as late deliveries or vendor no-shows. A construction industry survey puts revenue loss from late ordering, miscommunication and price swings at about 5 to 7 percent per job.
At the operational level, teams still often gather quotes by phone and spreadsheet, leading to slow invoice reconciliation, late payments and heavy administrative overhead. Fragmented information prevents real-time visibility into spend, making decisions reactive instead of strategic.
What procurement automation promises
Automation platforms aim to consolidate procurement workflows into a single, connected system that provides live pricing, order tracking and supplier performance data. Benefits cited by studies and vendors include error reduction, faster bid cycles, improved supplier relationships through timely payments, and more reliable spend analytics that reveal cost patterns and risk exposures. Automation also frees procurement staff to work on category strategy and supplier development rather than repetitive administrative work.
Industry analysis suggests procurement operating models will evolve toward three shifts over the next decade: moving transactional tasks to automation and generative AI, enabling strategic global category oversight, and supporting self-service so project teams can make informed procurement choices without heavy back-and-forth.
Examples from the field
The industrial expansion referenced above will convert cracker off‑gas to hydrogen for furnace fuel and capture CO2 for permanent storage, aiming to decarbonize about 20 percent of the host company’s global ethylene capacity. The expansion is a brownfield retrofit that started construction late in 2024, is being delivered in phases through 2030, and expects to add roughly 1.8 million metric tons of ethylene capacity while creating workforce peaks in the thousands during construction and several hundred operational jobs afterward.
In the oilfield and energy sector, procurement platforms have introduced RFx-style request-for-quote tools built into supplier directories so operations teams can issue bid requests in a few clicks, compare side-by-side responses, and retain searchable audit trails. Complementary modules include purchase-order systems tailored to field operations, inventory oversight, digital field ticket management for faster invoice approvals, and accounts-payable automation to centralize invoice processing and joint-venture approvals.
What experts are signaling
Consulting and industry research leaders see procurement as an elevated function that now influences early project scope and long-term supplier partnerships. Talent remains a top predictor of procurement outcomes, with capability development and career planning cited as critical retention measures. Digital ecosystems—multiple integrated tools and data sources—are being recommended over single point solutions to unlock the next phase of procurement performance. Regulators and carbon pricing mechanisms are also pushing procurement to marry cost reduction programs with emissions goals, with procurement playing a central role in scope 3 reductions for many firms.
Bottom line
Market unpredictability is expected to continue, and companies that build resilience with intelligent procurement systems are positioned to reduce errors, accelerate decisions and better protect project margins. The combination of standardization, real-time data and process automation can turn procurement from a source of delay into a competitive tool for large-scale construction and industrial projects.
Frequently asked questions
What is procurement automation and why does it matter?
Procurement automation uses software and digital workflows to centralize supplier quotes, purchase orders, invoice processing and spend analytics. It matters because it reduces manual errors, speeds up purchasing cycles, improves supplier relationships and gives project teams real-time visibility into costs and delivery status.
How big is the procurement software market for construction?
The construction procurement software market was valued at approximately $851.3 million in 2023 and is expected to grow at a compound annual rate above 8.5% through 2032—outpacing growth in the broader EPC sector.
Can procurement automation help with carbon and emissions reporting?
Yes. Centralized procurement data helps track supplier emissions, supports scope 3 assessments, and enables alignment of cost reduction programs with decarbonization goals. Some projects use automation to manage fuel switching, capture carbon streams, and document emissions reductions tied to procurement decisions.
Does automation replace procurement staff?
Automation shifts procurement roles from administrative tasks to strategic activities like supplier development, category management and risk mitigation. Studies predict routine transactional work will shrink substantially as tools automate quoting, approvals and reconciliation.
What immediate benefits should a construction team expect?
Faster quote turnarounds, fewer manual-entry mistakes, shorter invoice approval times, better supplier performance visibility, and more predictable project schedules and budgets.
Key features at a glance
| Feature | What it does | Why it matters |
|---|---|---|
| Centralized RFx and bidding | Create, compare and award bids in a single app with audit trails | Replaces emails and spreadsheets to speed sourcing and improve compliance |
| Real-time pricing & order tracking | Live material prices and order status updates | Reduces surprises and allows proactive budget management |
| Purchase order & AP automation | Issue, approve and match invoices and POs digitally | Speeds payments, lowers reconciliation errors and improves supplier relations |
| Inventory oversight | Track quantity and value by location and log transfers | Prevents stockouts and misallocated materials across projects |
| Spend analytics & supplier scoring | Aggregate spend, compare suppliers and identify trends | Supports strategic sourcing and risk mitigation |
| Carbon and regulatory analytics | Integrate emissions and compliance reporting into procurement | Enables cost- and carbon-aligned procurement decisions |
Deeper Dive: News & Info About This Topic
Additional Resources
- ABB: Signs agreement with Dow to support Path2Zero ethylene complex
- Wikipedia: Ethylene
- Enverus: RFx product for oil & gas procurement
- Google Search: Enverus RFx
- Bain: Ready, set, go — AI is poised to automate procurement
- Google Scholar: AI procurement automation Bain
- McKinsey: Procurement 2025 — reimagining the function for success
- Encyclopedia Britannica: procurement
- BusinessWire: CAM Integrated Solutions expands operations with new North Carolina division
- Google News: CAM Integrated Solutions expansion
Author: Construction NY News
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