How technology could boost the construction industry
The construction industry, like many others, is in a rut at the moment. Talent and skills shortages combined with increased costs and rising interest rates have placed enormous pressure on organisations.
Procore’s How We Build Now: Technology and Industry Trends Connecting ANZ Construction in 2023 report discussed some of these challenges, noting that an effective way around these issues is to invest in technology.
“It’s no surprise that industry sentiment in both Australia and New Zealand has softened over the last 12 months as construction leaders focus on strengthening their financial resilience,” said Tom Karemacher, head of Procore APAC.
“Nearly half of all businesses surveyed are looking to increase their spending on construction technologies — but our research suggests some leaders are caught in ‘analysis paralysis’.”
“They are focused on issues they can’t control and ignoring those they can. Many construction leaders recognise they must transform their businesses, but they are overwhelmed by the smorgasbord of options and don’t know where to start,” said Mr Karemacher.
Digital transformation is a big change on the horizon for the construction industry. AI is expected to take over, with 44 per cent of respondents noting that they’re likely to integrate AI into their business within the next five years.
There are obstacles to implementing digital transformation. The costs were the biggest issue for 41 per cent of respondents, while worries about the return on investment were the biggest worry for 35 per cent. However, Procore revealed that the younger companies see the value in this spending, and it could leave those who aren’t willing to invest behind the competition.
The report found that 14 per cent of spending costs on construction projects could be saved with better data management. Yet, just 29 per cent of companies that are planning to implement these data management systems are confident in their ability to do so.
“Some organisations are implementing innovative construction technologies to track, resolve and improve rework outcomes — and to anticipate potential clashes or possible errors,” said Procore.
“These companies understand that construction management platforms are far more than digital repositories. Construction management platforms also unlock insights using a wealth of project data to optimise processes, resources and planning, driving down risk and improving project delivery.”
While not every issue surrounding the construction issue can be fixed by investment in technology, there are plenty that can.
Procore listed the five biggest headaches for the future of the industry:
- Rising costs of raw materials and equipment
- Staff management, especially hiring and retaining skilled staff
- Winning competitive tenders at a sustainable margin
- Dealing with trade contractors, contracts and payments
- Increasing productivity to help manage project volume
“Preparing for the future — and being able to pivot quickly — requires access to real-time insights. Businesses must begin to lay the foundations today,” said Procore.
“The paybacks will be immediate. Grounding decisions in data adds predictability to every project. Investing in the right technology is less about future-proofing and more about making the ideal future state of your business a reality today.”
