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Research by McKinsey & Company shows that construction productivity has increased by an average of 1% per year over the past two decades. A major reason for this is that construction is still one of the least digitalized industries in the world. Even traditional industries such as government, mining, oil and storage all have greater productivity gains than construction. They do digitalize.
But why is construction falling behind? Construction is complex. The reason that construction does not achieve significant efficiency gains is also complex. Many factors are involved.
1. Innovation is not a priority
In construction, the least money is spent on software and technology. The amount is so small that a third of respondents say contractors spend less than 1% of business revenue on IT. The construction sector spends an average of 60 to 70% less on IT than any other sector. 37% of contractors cite a limited construction budget as an important cause.
2. Subcontractors, technology and data are separate from each other
Construction is a collaborative process involving architects, designers, consultants, subcontractors and general contractors among others. A breakdown in communication can lead to disconnected teams and information loss. This leads to delays, rework and waste. According to a recent FMI report, poor project data and miscommunication about projects are responsible for 48% of all construction reworks.
3. Employees do not cause change
Construction is one of the oldest sectors in the world. That's why you don't just change old habits. For companies implementing new solutions, ensuring buy-in and real change in the workforce is a challenge. According to FMI's research, more than a third of construction professionals indicate that technology is failing because it does not fit well into current processes and procedures. The FMI study also shows that only 28% of companies that want to digitalize actually understand the new systems.
The solution
The lack of technology and digitalization is especially concerning when you consider the amount of data and people involved in the average construction project. No wonder most construction companies struggle to keep the promise of efficient and continuous collaboration.
Progress is the real challenge. Ultimately, solving the construction productivity crisis is creating a collaborative, digitalized workflow with connected technology. This does not only start in one phase of the construction process. It must cover the entire cycle of a project. From design and planning to on-site and beyond.
12Build has the solution for lack of productivity. Over the past 13 years, we have already implemented 12Build with more than 800 prime contractors in Europe. They confirm that they immediately see an efficiency increase of more than 30%.
When you receive quotes via emails and send WeTransfers with plans now, you always have to search for the email address and ask your colleague if there has already been communication. With 12Build that is a thing of the past. All communication and storage is automated. So no more manual processes, email and Excel spreadsheets. But all information and responses can be found in one safe and central place. 12Build gives you more time for the things that really matter.
Two reasons for general- and subcontractors not to digitalized are costs and time. At 12Build we guarantee that calculation, purchasing and work preparation can start immediately and with ease after 3 hours of training. General contractors also benefit from a significantly improved ROI (Return On Investment) from day 1. In all the projects we have worked on over the years, we see savings between € 10,000 and € 300,000 per year.
The more and more intensively your organization works with our system, the smarter the 12Build system becomes. All knowledge of you and your colleagues is built up within 12Build. There is no more loss of knowledge because everything is stored correctly.
