Get Real
The Internet’s overhaul of the economy has only just begun. A quick glance around the major marketplaces reveals where the real action is, and other sectors where the Net is still just blowing bubbles.
1. Construction
Total market: $1.7 trillion
Net share: $3.4 billion
Net share in 2003: $28.6 billion
of a $2.1 trillion market
The construction industry is often thwarted by hurdles as low-tech as rain. But it doesn’t stop there. Mired in organizational malaise — daily collaboration among hundreds of contractors, engineers, and architects; mounds of paperwork behind each transaction — the industry is ripe for streamlining by the Internet. But so far, the Web’s claim to the market is nominal. Says Forrester Research analyst Matthew Sanders: “We’re just cracking the surface.”
Count among the trailblazers BuildPoint.com, which specializes in a bid management and procurement marketplace, and which has generated more than $1 billion worth of subcontracts in less than three months. Players such as Bidcom, Bricsnet.com, and Cephren have collaboration tools that track project specs, cutting costs and reducing errors in work flow. Other online tools in the works: blueprint editors, Web-cams that show still-shots of the construction site, and automatic email notices when a project has been changed or updated. The multifold benefits include vastly greater efficiency, reduced procurement costs, and less communication runaround. If the industry takes advantage of shipping marketplaces such as GoCargo.com, which auctions off excess space on barges, the savings could mount.
Thank to the international calling cards, you will save fund, since you may simply check your bill.