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 Strategic Fix for Construction’s Labor, Inflation and Supply‑Chain Woes
The construction industry is increasingly treating procurement automation as a near‑term strategic tool to fight labor shortages, rising costs and ongoing supply‑chain disruption. With the global engineering, procurement and construction market approaching $974.4 billion by 2025 and procurement software adoption growing far faster than the broader market, companies are moving away from spreadsheets, phone calls and ad hoc practices toward connected systems that give real‑time visibility and tighter control over spend.
Why automation is taking center stage
Construction firms face three linked pressures: scarce skilled labor, volatile material prices driven by inflation, and supply‑chain shocks that can delay projects. These factors are raising the cost of mistakes: industry studies show procurement issues cause a large share of project delays and revenue loss. One analysis estimates 30 to 35 percent of project delays are tied to procurement failures, while another finds contractors can lose an estimated 5 to 7 percent of project revenue per job because of late orders, miscommunication and price swings. Surveys also flag how manual vendor management produces widespread errors, with nearly nine in ten procurement teams reporting increased inefficiencies and nearly half of errors traced to manual data entry.
Against that backdrop, procurement automation is being framed not just as a cost reducer but as a resilience and competitive tool. Automation consolidates workflows, centralizes data, speeds invoice reconciliation and helps teams track orders and supplier performance in real time. These capabilities let procurement leaders move from reactive firefighting to proactive planning — anticipating budget shortfalls, re‑routing buys to lower‑risk suppliers or locking better prices before volatility hits.
Major industrial automation work joins the trend
A notable industrial project illustrates how automation and procurement modernization are being paired with large capital builds. A global chemical producer is building a brownfield expansion designed to be the world’s first net‑zero Scope 1 and 2 ethylene and derivatives complex at a site north of a major Alberta city. The build aims to add roughly 1.8 million metric tons of ethylene capacity in phases to 2030, create up to 5,000 construction jobs at peak, and add about 500 full‑time operational roles. To decarbonize operations, the project will recover cracker off‑gas, convert it to hydrogen for furnace fuel, and capture CO2 for permanent storage.
As the automation partner under a leveraged procurement agreement, a process automation supplier will expand an existing distributed control system and supply hardware and cabinet engineering, adding approximately 25,000 new I/O channels. The partner will apply a standardized delivery approach intended to lower risk, manage cost and speed repeat builds across future sites. The move reflects how large projects now tie procurement decisions, automation design and decarbonization together to meet both carbon and operational goals.
Oilfield procurement goes digital with specialized platforms
In the oil and gas supply space, vendors are pitching digital tools built for quick bidding and buy decisions. One supplier marketplace offers an RFx tool that lets operations and supply teams create bid requests in a few clicks from a vetted supplier directory. The tool is designed to replace emails and spreadsheets with reusable templates, side‑by‑side bid comparison, searchable audit trails and chat functions that keep communications and records inside a single app. Complementary modules include purchase‑order systems that track approvals and inventory, digital field ticketing to speed invoice approvals, and accounts payable automation to reduce manual processing.
These industry‑specific tools aim to cut sourcing time for common items (like maintenance supplies and piping valves), improve compliance, and give procurement teams a faster route to market with minimal training required. They also promise analytics and audit features so procurement can monitor supplier rates and spot spend patterns that inform future sourcing and risk planning.
What the numbers say
- The construction procurement software market was valued at about $851.3 million in 2023 and is forecast to grow at a compound annual growth rate above 8.5% through 2032, nearly three times faster than the wider EPC market.
- Surveys report that manual procurement processes account for high error and inefficiency rates, and procurement problems are a leading source of project delay and revenue leakage.
- Industry research and consultants predict procurement roles will shift from transactional tasks toward strategic category management, partially enabled by automation and generative AI.
Main barriers and what companies must do
Even with clear benefits, successful automation requires more than deploying point tools. Firms must reimagine procurement’s place in the project lifecycle, invest in talent development, and build digital ecosystems rather than rely on single apps. Research highlights talent as the single biggest predictor of procurement outcomes, meaning capability building and career planning are essential. Where inflation and geopolitical risk change sourcing math, procurement leaders increasingly focus on alternative sourcing strategies that reduce tariff and political risk.
Bottom line
Current market pressure is prompting construction and industrial operators to treat procurement automation as a strategic lever. Those that build centralized systems, move routine work to automation and use real‑time data to align procurement with finance and operations will be better placed to control costs, meet timelines and hit sustainability goals.
FAQ
What is procurement automation?
Procurement automation uses software to replace manual tasks like gathering quotes, creating purchase orders, tracking invoices and reconciling payments. It centralizes data, speeds decisions and reduces human error.
How does procurement automation help with labor shortages?
By automating routine, repetitive tasks, procurement automation frees up staff to handle strategic work such as supplier selection, category management and risk mitigation, making smaller teams more productive.
What are key features to look for in procurement software?
Look for centralized spend visibility, live material pricing, automated price validation, supplier directories, reusable bid templates, side‑by‑side bid comparison, audit trails and integration with invoicing and inventory systems.
How is automation tied to decarbonization in large industrial projects?
Automation supports energy efficiency, process optimization and monitoring, enabling plants to operate cleaner and capture emissions more reliably. In some projects, automation is integrated with designs that recover fuels and capture CO2 at scale.
Can specialized RFx tools replace traditional supplier bids?
Yes, industry‑specific RFx tools can streamline bidding for common categories, provide vetted supplier access, and keep audit records, helping teams find best value faster without heavy training.
Is procurement software expensive to adopt?
Costs vary. Many vendors offer modular tools scaled to need. The larger investment is often in process change, integration and upskilling staff to use data for strategic decisions.
Quick feature comparison table
| Feature | What it does | Example use |
|---|---|---|
| Centralized Spend Visibility | Collects purchase orders, invoices and contracts in one place for live analysis. | Spotting budget overruns before they delay a project. |
| RFx / Bid Platform | Creates and compares bids quickly from a vetted supplier list. | Issuing a quick MRO or PVF bid and awarding the best value supplier. |
| Automated PO & Invoice Workflows | Routes approvals and validates prices to speed payment and reduce errors. | Cutting invoice processing time and avoiding late fees. |
| Supplier Performance Data | Tracks deliveries, quality and compliance to evaluate vendors. | Choosing lower‑risk suppliers during geopolitical uncertainty. |
| Integration with Automation Systems | Links process control and procurement for repeatable hardware and software builds. | Standardizing control system modules across multiple plant expansions. |
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
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