Galorath's 2025 Industry Report Highlights the Need for Smarter Estimation Strategies in Uncertain Times

Galorath's New Industry Report: A Wake-Up Call for Project Estimation



In May 2025, Galorath Incorporated, renowned for its AI-powered solutions, unveiled its first-ever State of the Industry Report focusing on cost, schedule, and risk management. This comprehensive study draws insights from varied sectors such as aerospace, defense, and technology, presenting a pressing need for strategic planning in light of evolving economic challenges.

Key Findings on Cost Volatility


The report indicates that nearly 90% of organizations experience unpredictable cost changes, making it the leading operational risk for 89% of respondents. The struggle to adapt budgets and timelines amid swift external changes highlights a critical gap in current manual estimation processes. Galorath’s Chief Strategy Officer, Charles Orlando, emphasized that the past five years have reshaped how projects are planned and executed. He stated, “This data underscores that market dynamics are shifting, and organizations need to adapt their estimation processes from fragmented to strategic and AI-enabled frameworks.”

The Role of AI in Estimation


Interestingly, the report suggests that while 56% of professionals recognize AI's importance for future success, 63% have yet to implement it. Key reasons for this lag include vague deployment strategies and lack of internal advocacy. Nonetheless, a growing number of organizations are establishing AI assessment teams and experimenting with initiatives like SEERai™, highlighting a gradual shift toward modernization in estimation methodologies.

Automation: An Underutilized Asset


Despite the apparent advantages of automation, less than half of respondents automate even half of their planning and estimation workflows. Many teams encounter barriers such as insufficient automation training and lack of coherent strategies. The report advocates for enhanced workforce training to unlock the potential benefits of automation technologies.

Confidence in Estimation Practices


Confidence in cost estimation remains persistently low, with only 12% of professionals expressing high confidence in their forecasts. Approximately half described their trust level as only moderate. The reliance on outdated tools and manual assumptions hampers decision-making accuracy. Interestingly, teams using advanced predictive modeling and AI risk analysis report a higher degree of confidence and alignment in estimates.

Integration Challenges


The report also sheds light on the fragmented nature of estimation tools across organizations. Only one-third of the surveyed entities have integrated their tools across departments, with 11% working in completely siloed environments. This lack of integration often slows down decision-making and complicates oversight, highlighting an urgent need for strategic reassessment of cross-functional collaboration in project estimation.

ESG Factors in Planning


Environmental, social, and governance (ESG) considerations are gradually influencing project planning methodologies. A remarkable 84% of respondents acknowledged that these factors now shape project framing, although they are not fully formalized yet. The integration of ESG priorities early in planning cycles may prove advantageous for organizations aiming for long-term resilience and compliance.

Conclusion: A Shift Towards Intelligent Planning


As organizations recalibrate their planning strategies in response to these findings, Galorath is committed to leading this evolution. The report serves as a crucial resource for leaders seeking to make informed decisions under time constraints and complex pressures. It emphasizes the pressing need for estimation processes to evolve by incorporating AI and streamlined methodologies, ultimately aiming for enhanced speed, accuracy, and accountability in project outcomes.

To access the full report and gain further insights tailored to your industry interests, visit galorath.com/soti.

About Galorath Incorporated


Galorath delivers an innovative business operations intelligence platform founded on extensive real-world validation of cost, schedule, and risk factors in diverse industries. Their flagship SEER® platform is trusted by major players across sectors, ensuring expedited project timelines and improved predictability. Learn more at galorath.com.

Topics Business Technology)

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