Gain a Competitive Advantage in the EPC Sector
Construction Leaders Drive Transformation Through Enhanced Data Capabilities
Engineering, procurement and construction (EPC) firms face complex market dynamics (from labor shortages to cost increases and global supply chain vulnerabilities). Many are rethinking how they work, plan and build.
The good news? A growing number of EPC leaders lean into digital transformation. In fact, 70% of industrial organizations have increased the number of digital tools and data sources in the last 12 months.
Yet despite these investments, siloed systems, outdated processes and fractured workflows remain the norm. This disconnection limits decisions, delays project timelines and introduces unnecessary risk.
In Hexagon’s latest industry survey, 400 C-suite executives and senior industrial leaders confirmed repeated challenges, alongside new strategies to gain a competitive advantage.
Download the full Hexagon Data Connectivity & Visibility eBook to learn more.
What EPCs Face Today
Hexagon’s research highlights a clear pattern. EPC leaders face significant hurdles that continue to slow progress and increase exposure.
- 93% report impacts from projects that run over budget.
- 70% say missed project milestones strongly or severely impact their business.
- 65% cite unplanned production downtime as a critical issue.
- 93% are affected by the inability to scale assets to meet demand.
- 65% face safety concerns; 63% report cybersecurity as a strong operational risk.
These issues create ripple effects across capital projects, operations and customer delivery. The consequences can be severe for EPC organizations that manage larger distributed teams and assets.
What Drives These Challenges?
A closer look at the survey data reveals the interconnected factors behind these pain points:
- Skills and knowledge gaps impact 76% of respondents. An aging workforce, short job cycles and fewer experienced workers make it harder for organizations to stay agile.
- Data problems also persist:
- 74% experience delays from outdated or inaccurate data.
- 73% cite poor data integration between systems.
- 73% identify incomplete or disconnected information as a major hurdle.
- Manual workflows and legacy infrastructure continue to strain operations. In fact, 74% say that manual processes have a strong impact and 73% cite outdated systems.
The result? Decision- making suffers, project execution falters and digital investments often fail to deliver expected returns.
Data Overload vs. Data Connectivity
More tools don’t automatically mean more value. In fact, 63% of organizations that increased their tech stack say teams now spend excessive time on manual data consolidation, equivalent to 117 workdays per year. This boost in digital tools contributes to:
- Fragmented insights
- Greater cybersecurity vulnerabilities
- Higher project overruns: 75% of companies with more tools report missed milestones)
- Less confidence in ROI: 56% say their digital transformation efforts haven’t delivered expected value.
The clear lesson shows that without connected and contextualized data, digital tools become a burden rather than a benefit.
A Spotlight on Digital Thread Technology
EPC leaders turn to digital thread technology to overcome fragmentation and gain full operational visibility.
Digital threads connect data across the asset lifecycle to ensure traceability, continuity and real-time access. Among those who use digital thread technology frequently or continuously, 71% say stakeholders have access to the data and systems they need (compared to just 57% among infrequent users).
When organizations connect all data through a centralized pipeline, the results can be transformative. This approach allows teams to track data throughout its lifecycle, validate outputs from engineering before they move downstream, and ultimately enhance performance across the project lifecycle. The ability to ensure accuracy and continuity from the outset reduces inefficiencies and creates a stronger foundation for data-driven decisions. Still, adoption maturity varies. Most EPCs operate at a “moderate” level of maturity, often constrained by internal resistance, budget challenges and legacy tech ecosystems.
Steps to Advance Digital Maturity
Advancing digital maturity in the EPC sector requires addressing legacy systems, managing change, and adopting scalable, platform-based solutions. Paul Connell, Senior Strategy & Enablement Consulting Lead at Hexagon, explains:
"The majority of EPC organizations are at moderate maturity today, with isolated data integration capabilities. While design and engineering teams may be pushing toward advanced digital thread capabilities, downstream workflows often rely on patchwork solutions, leaving gaps in processes. However, the effort to increase maturity is worth it, as it mitigates data validation issues and enables powerful new capabilities. If you can connect all data through a centralized pipeline, with a kind of birthmark on each piece of data to track its lifecycle, the benefits are transformative."
Digital transformation success requires more than technology: it needs a strategy-first mindset. Check out these five key steps to elevating your digital thread maturity:
- Address legacy systems and manage change proactively.
- Plan for scalability from the start (avoid short-term fixes that won’t scale).
- Choose solutions that meet you where you are without current workflows disruption.
- Adopt a platform-based approach to unify data.
- Prepare to layer on AI as your maturity grows to extract even greater value from trusted data.
Data as Your Competitive Edge
As EPC firms navigate volatile conditions, digital transformation remains a critical lever for operational resilience, regulatory readiness and growth.
When organizations prioritize data visibility, continuity and connected systems, they reduce risk, boost productivity and enable innovation. Hexagon’s insights show that organizations that advance their digital thread maturity remain better positioned to lead.
Find out more tips and insights on how to advance your organization’s digital maturity journey in our full report.