Navigating Cost Volatility: How Tech Gives Assessment Providers an Edge

It’s not news that construction material costs have surged in the last year and that nearly all markets are facing volatility. According to ENR’s First Quarter 2025 Construction Cost Report, a newly imposed 25% tariff on all foreign steel and aluminum is expected to push up already-high materials prices — and that’s not including any tariffs that have been instituted since that time. For facility assessment providers, this presents a unique challenge: clients are scrutinizing expenses more carefully than ever, yet they desperately need accurate facility data to navigate these uncertain times.

This market pressure is creating a clear divide between assessment providers. Those relying on traditional methods and deliverables are finding themselves in increasingly competitive bidding situations with shrinking margins. Meanwhile, providers embracing digital solutions are discovering new ways to deliver value that transcends the constraints of tightening budgets.

The New Assessment Landscape

With material costs climbing and budgets under pressure, facility managers and building owners are hesitant to invest in comprehensive assessments—precisely when they need them most. This hesitation is understandable; when every dollar counts, spending on what might be perceived as “just information” can be a tough sell.

With fewer projects moving forward, more firms are fighting for the same limited pool of work. This has created downward pressure on fees at exactly the moment when delivering quality assessments requires more effort and expertise.

Digital Assessment Tools: The Competitive Edge

Forward-thinking assessment providers are finding that technology offers a path forward that addresses both client concerns and competitive pressures:

• Speed and efficiency gains: Mobile data collection tools allow assessors to document conditions, capture photos, and record asset information in a fraction of the time required by clipboard-and-camera methods. This efficiency translates directly to cost savings that can either improve margins or be passed on to price-sensitive clients.
• Enhanced forecasting accuracy: In volatile markets, the ability to provide accurate cost projections becomes exponentially more valuable. Digital platforms allow for more sophisticated cost modeling that accounts for regional variations, supply chain disruptions, and material-specific inflation rates.
• Deliverables that create lasting value: Perhaps most importantly, digital tools enable assessment providers to move beyond the static PDF report—a deliverable that begins losing value the moment it’s delivered. Instead, they can offer living, interactive data that clients can continue to leverage for years to come.

The Problem with Traditional Cost Forecasting

Traditional facility condition assessments typically rely on standardized cost databases with fixed inflation rates applied across the board. This approach has always had limitations, but in today’s volatile market, it’s becoming increasingly problematic:

• Static reports quickly become obsolete: When material costs can jump dramatically in a matter of months, the 3% annual inflation factor applied in most reports becomes meaningless.
• Budget planning becomes impossible: Facility managers using outdated cost projections find themselves with approved budgets that suddenly fall far short of actual replacement costs.
• Client trust erodes: When assessment providers deliver cost projections that prove wildly inaccurate within months, it undermines confidence in the entire assessment process. Clients begin to question the value of investing in professional assessments at all.

How Digital Platforms Enable Responsive Cost Adjustments

Assessment providers using digital platforms can offer a fundamentally different approach to cost forecasting:

• Dynamic cost databases: Rather than relying on static cost libraries, digital platforms can incorporate real-time cost data that reflects current market conditions. This allows for much more accurate initial projections.
• Portfolio-wide updates: When market conditions change dramatically (as with recent material price fluctuations), assessment providers can update cost projections across an entire portfolio with minimal effort. What would take weeks of manual recalculation can be accomplished in hours.
• Ongoing client engagement: These updates create natural touchpoints for continued client engagement. Rather than delivering a report and moving on, assessment providers can position themselves as ongoing advisors, helping clients navigate volatile markets with current, accurate data.

AkitaBox’s facility condition assessment tools are specifically designed to help assessment providers thrive in this challenging environment:

• Mobile efficiency: Our mobile data collection platform reduces field time by at least 25% compared to traditional methods. Assessors can quickly document conditions, capture photos, and record asset information without the redundant data entry that plagues traditional workflows.
• Interactive deliverables: Instead of static PDFs, AkitaBox enables assessment providers to deliver interactive, location-based asset data that clients can actually use for day-to-day operations. This transforms the assessment from a one-time expense to a valuable operational tool.
• Recurring revenue opportunities: The platform is designed to support ongoing data maintenance services, allowing assessment providers to create subscription-based revenue streams that complement traditional project-based work.

AkitaBox Can Help

In a market defined by rising costs and tightening budgets, technology adoption isn’t just a nice-to-have for assessment providers—it’s becoming a strategic necessity. The firms making waves aren’t the ones competing on rock-bottom fees. They’re the ones equipping clients with dynamic data that stays relevant even when material prices don’t.

Assessment providers who will thrive in the coming years are those who can demonstrate real value: helping clients navigate uncertainty with confidence and make smarter facility decisions despite market volatility.

Ready to see how AkitaBox can transform your assessment services? Contact us today for a consultation.