Digitalisation within the construction industry has only slightly improved over the years. The results obtained from the ‘Digitisation Index for SMEs 2018’ show that the industry has only obtained 51 out of a possible 100 index points.

It is just an increase of 2 points on the previous year. Nevertheless, from the results of this study, it is clear that the construction industry still has a great need to continue improving its digital transformation.

The cross-sector average of 55 points highlights that the industry is 4 points below the average. It also shows that only 33% of the construction industry has ensured that digitalisation is part of their business strategy, 12% below the average across all sectors.

However, 38% of companies surveyed record that the advantages of conversion to digitalisation have far outweighed the costs, mainly as they made an early investment into their digital future.

Digitalisation: The Construction Industry is Trailing Behind

The statistics show an increase in construction companies making improvements in their planning and use of digital Building Information Modelling (BIM).

Additionally, more companies are utilising digitalisation, particularly the advantages of mobile device use at their wide-ranging work sites.

However, it is regrettable that the industry remains trailing behind other sectors.

Although there is a slight increase in digitalisation, it is difficult to deduce the industry’s reluctance in the face of the global transformations.

Current Innovations and Trends

However, it is not all bad news in the construction industry. Given the advances in technology in recent years, those companies who have embraced digitalisation find themselves at the cutting edge of their industry.

One prime example is in 3D printing, with one in ten companies now using this process. From architects and planners to project managers and contractors, many aspects of the construction industry are reaping the benefits of having three-dimensional models from a computer-aided design (CAD) at the touch of a button.

The transformation of one-dimensional drawings into a 3D model revolutionizes the industry. We can see this particularly in companies with fully integrated digitalisation into their everyday planning. So-much-so that a further 26% of companies want to follow this lead and implement digitalisation within two years.

Other new developments proving the advantages of digitalisation are virtual and augmented reality. Virtual reality creates a walk-through simulation allowing the user to ‘visualise’ a room, building, or other structure. We can see in ‘reality’ any faults or issues quickly, allowing for re-adjustments before building the system.

It will enable all concerned in the building industry to ‘walk through’ their proposed project. In return, they will have scope to help in safety training in a safe environment.

Augmented reality differs from virtual reality. It allows the user to see a computer-generated structure onto a real-life view and assess any possible impacts.

29% of construction companies are either currently using virtual and augmented reality applications. Some are planning to put them into action soon.

Improved Productivity in Construction Industry with Digitalisation

Construction is a flourishing industry and will remain so for the foreseeable future. With the global population expansion and the ever-growing need for homes to accommodate people, infrastructure construction and renovation, and low scale interest rates, many companies and private individuals are investing in concrete gold.

Maintaining your competitiveness in the ‘concrete jungle’ has never been more critical. Therefore, the expansion into digitalisation is a fundamental requirement to boost productivity.

Companies recognise the need for a better exchange of communication and information. Not just within their organisational structure, but also with their customers and partners.

Audio and web conferencing have become part of many daily routines while more companies implement these essential but straightforward digital packages.

For others, mobile devices that record the working hours of their employees are fast becoming popular. This is because it eliminates the need for manual processes. 

We must not forget the importance of customer interaction. Customers today expect an instant response to their demands for information.

Digitalisation within a company, especially with employees out on a construction site, allows access to construction plans, schedules, and other necessary documentation via laptop or other mobile devices.

Effects on Business Successful

Most companies who have transitioned to digitalisation, whatever their industry, are reaping the benefits. They obtain more efficient order management system to the use of email, digital conferencing, and integrated calendar applications, allowing quicker communication and response orders, requests, and access to information.

Along with general digitalisation, more construction companies are actively using Cloud. These applications have many advantages. As well as being easy to use and adaptable, it is also very cost-efficient.

29% of construction companies now using digitalisation are making extensive use of IT infrastructures from the Cloud, a rise of 12% in just two years. 30% of those surveyed used platforms, and 31% use Cloud applications. We recognize these as advanced Cloud users.

Measurable impact on those companies has been highly successful. 76% of companies report that business ideas are more accessible using Cloud solutions. Meanwhile, 77% report an increase in internal processes’ efficiency and more flexibility throughout the organisation.

More companies are applying more digital automation to their various process chains, from the initial placing of an order and receipt management to implementation and outcome. 

Digital Offers and Business Models

Technological and digital advancements have a far-reaching impact in all walks of life and none more so than in the field of construction.

These new developments have turned our homes into ‘Smart’ homes whereby we can control the heating levels, open and close shutters or curtains, or even turn lights on and off just by using a smartphone. 24% of companies surveyed said they already offer their customers ‘Smart’ products. 

30% of construction companies analyse their customer data, thereby being in a position to offer individual products and services. This figure is gradually rising as companies see the advantages for themselves. 

Digitalisation in the Construction Industry and the Increase in Turnover

Research has shown that digital transformation is cost-effective. Notably clear is the example of the 10% of digital leaders who have reported notable improvements with digitalisation and the achievement of an index value of 88 points.

Likewise, they also reported above-average satisfaction with core business figures alongside reporting successes. For example, 87% of these digital trailblazers appreciate the number of new ideas and innovations accessible. This statistic compares favorably with the usual average of 40% within the industry.  

Regarding customer acquisition, these digital leaders are also ahead of other construction companies, with a satisfaction rating of 79% compared with 48% throughout the rest of the industry.

This data shows within sales, with 88% of digital leaders reporting satisfaction with sales compared with only 60% as an industry average. 54% of these top 10 companies reported a sales increase of 5% over last year. Once again, 14% higher than the rest of the industry.

Digital Transformation Pays Off

None of this comes for free, with costs incurred in the investment of the new technologies and digital expertise. However, as we have shown, the benefits outweigh the cost as 38% of companies have reported, with a further 38% reporting a balanced cost-benefit ratio. 

Digital Competence

Digital technology requires digital competence, and companies must ensure they have in place employees with those competencies.

No investment in new technology will transform a company without someone to operate the system. Unfortunately, digital knowledge and skills are severely lacking throughout the construction industry.

However, in 46% of companies, both management and workers have expressed themselves open to digital change. It is now down to these companies to promote and develop digital skills among their workforce.

It may require forward-thinking how this training is conducted. 64% still favor those classical procedures such as seminars and external companies.

Conclusion

Digitalisation is the future, and the construction industry is just waking up to this. We must realise that to remain competitive in today’s construction climate, we need to transform our company into a digital one without delay.

As it shows, they are reacting. They are growing digitally, particularly in the past 12 months, by focusing on three digital fields of action; productivity, digital business models, IT security, and data protection.

We can see here that there is still room for improvement, but those digital leaders who have led the way provide many incentives to other construction companies to follow their example.

When Will You Start Your Digitalisation?

Here at KVP-Solution, we have over 30 years of experience in the construction industry and ancillary building trade.

We can see the opportunities for small and medium-sized companies in digitalisation while keeping the minimum expenditure. Our expertise provides for companies’ inexpensive and flexible resolutions while maintaining simple CRM solutions.

We understand customer data and communication issues and targeted digital marketing. Technology can be as simple as a telephone and tablet, ensuring that you will always have the correct information at your fingertips at all times.

Contact us now and start our digitalisation with us right away.