Digital transformation in the construction industry is now top of the agenda for many firms, becoming a high-priority initiative to maintain competitiveness in a tough market. Executives across all industries are aware of the benefits of digitisation, with most organisations implementing construction software at some level across the business
To those of you who are not familiar with the concept, digital transformation is the integration of digital tools to optimise processes and make them more efficient. It has been proven to create significant value for construction firms, with a swift ROI and increase in productivity. Despite this, digital transformation in the construction industry is not where it should be.
FlowForma, in partnership with Construction Dive, has conducted a survey with 100 key construction – decision-makers about the current state of digitisation in the sector, with a strong emphasis placed on construction workflows and business processes.
Operational efficiency on construction projects is a priority
From our extensive survey, the vast majority (94%) of construction executives and managers want to improve employee safety on-site. The industry has extensive safety requirements, given the nature of the job and negligence of health & safety regulations can be costly to a construction firm. For health & safety managers within the construction sector, risk assessment plays an important part. Potential hazards on a construction site require critical examination and careful documentation – manual administration can lead to human error.
A majority also view operational efficiency on construction projects as a priority. 87%
of construction executives and managers view an increase in operational efficiency as either very important or absolutely required. A high level of operational efficiency means that construction firms avoid overruns and complete projects on time and to budget.
Data is not just a commodity for business leaders. It’s a real business asset and is leveraged for business strategy and decision-making. According to our survey results, real-time project analytics informs decision-making for 96% of construction executives and managers. Furthermore, 92% consider data insights as a high-priority business outcome, rating it as either very important or absolutely required. Process automation and BIM tools enable real-time data access, high data quality and allow users to access data when offline – useful on a construction site with limited online capabilities.
For a digital landscape in which multiple applications are used simultaneously, it’s important that systems talk to one another, feed through data and promote collaboration across the value chain. 88% of construction executives and managers want seamless integration of multiple solutions.
Integration of tools is necessary to create a holistic data picture, generate transparency across project lifecycles and promote better collaboration between teams.
From our survey results, we learned that construction executives and managers would like a workflow tool to integrate with the following:
- Finance systems.
- Project management software.
- Document management software.
- CRM systems.
- ERP systems.
Roadblocks to digitisation in construction
Implementing a digital strategy can seem a difficult task for construction business leaders, especially those with little management support or engagement. Very few construction firms have fully digitised their processes and construction remains one of the least digitised industries.
According to survey results, the biggest obstacles to digital transformation are:
- 50% of construction executives and managers claimed to be satisfied with current processes. However, a high percentage (90%) still use outdated methods (email/Excel/paper forms) for 25-100% of their business processes, and 47% of respondents rated their firms at either a beginner or intermediate stage in their digital capabilities.
- A major roadblock to digital transformation is the perceived burden on IT staff. Many construction executives believe that digital transformation cannot be supported as a strategy without the IT team behind it, or that a lack of IT talent prevents the necessary change.
- Our survey results, 53% of respondents see security concerns rising from remote data access as a challenge for their company.
Remote access can expose a construction business to cyberattacks and malicious actors, given its lack of physical security controls and potential unauthorised access to systems. Security is a major concern for executives wanting to implement new digital solutions. - The Infrastructure Improvement & Jobs Act will funnel around $1.2trn into United States construction projects, including the nation’s roads, water systems and bridges. The bill is expected to create more projects for construction firms that specialise in infrastructure and provide an uptick in construction activity. 85% of construction executives and managers think the Infrastructure Improvement & Jobs Act will have an impact on project pipelines.
An upswing in digital transformation in the construction industry
Digital transformation in the construction industry is starting to take hold with industry leaders increasingly aware of its benefits.
In Construction Dive’s survey, respondents are typically forward-looking, with most expecting to expand digitisation efforts over the next 18 months. The value of digitisation is clearly understood, with 87% of construction executives and managers accepting that it gives construction firms a competitive advantage.
Despite this, just under half of construction firms are still at a beginner or intermediate stage of their digital capabilities. And a clear majority still use outdated methods (email/Excel/paper forms) for 25-100% of their business processes. These businesses must adapt, or risk being pushed out of the market by more technologically advanced and innovative firms.
Ursula Cullen
Digital Marketing
Tel: +353 1 5369 654
*Please note: This is a commercial profile
