Connected construction: Industry digitalisation in numbers

For years, the construction sector has been portrayed, and portrayed itself, as the poor relation in an ecosystem of otherwise dynamic and enterprising industries. Visionaries in the fields of manufacturing, agriculture, retail and entertainment have embraced the challenges of the fourth industrial age and reaped the rewards. Meanwhile, construction has remained rooted in the practices of the 20th century; a sleeping giant, somnambulating its way into obsolescence. Such cautions have been intended as a wake-up call; perhaps through sheer weight of repetition, they seem to have lost some potency. Urgent warnings that may once have landed like heavy-handed slaps to the face, by now carry the pillow-fisted shock value of cliché.

Earlier this year, global market intelligence firm IDC partnered with Autodesk to survey hundreds of construction firms across the world. The aim was to compile a comprehensive dataset on attitudes to digital transformation (DX), strategies for tech adoption and barriers to implementation. Or, phrased differently, empirical evidence that could underpin or undermine the timeworn clichés.

The results of their research, unsurprisingly, make for less than comfortable reading. 

First, the good news: the will is there.

DX is a priority for 72% of construction firms worldwide. The urgency is felt most keenly in Europe, where 82% of firms are treating DX as critical. But the researchers also found that 32% of firms spend less than 3% of total turnover on digital technologies. The very best of intentions are useless without investment.

IDC has identified five categories of company currently embarked on the DX journey. In doing so, they have been able to segment the industry by levels of digital maturity.

Digital resisters

Businesses for whom digitalisation initiatives are incoherent and poorly aligned to wider corporate goals. 32% of surveyed firms placed themselves in this category.

Digital explorers

Businesses that have identified the need for DX but have yet to move their digitalisation projects beyond conception stage. 24% of surveyed firms placed themselves in this category.

Digital players 

Businesses that have developed a limited suite of digital products and services but are yet to fully realise the disruptive potential of DX. 28% of surveyed firms placed themselves in this category.

Digital transformers

Businesses that are delivering continuous, integrated and synergistic digitalised products and services. 11% of surveyed firms placed themselves in this category.

Digital disruptors

Businesses that aggressively use new digital technologies and business models to affect markets and are constantly seeking to innovate. Just 2% of surveyed firms placed themselves in this category.

The fact that nearly 60% of firms are in the early stages of their digitalisation journey needn’t necessarily be cause for concern. The key to progress is momentum, after all. Worryingly, 52% of surveyed firms say that they have reached an impasse in their DX journey and see little immediate prospect of advancing to the next stage.

The research also demonstrated that digital maturity is positively correlated with BIM usage.

Worldwide, 41% of surveyed firms are currently investing in BIM-based workflows, while a further 30% plan to invest in BIM in the near-term. Brazilian firms lead the world, with 53% currently investing in BIM software.

Furthermore, 95% of Indian firms have invested in BIM software, or plan to do so imminently. By contrast, only 16% of firms in Australia and New Zealand are BIM ready; 34% are planning investments in the near term.

Across all countries, 27% of firms have an in-house BIM specialist, while 15% of firms outsource all of their BIM related work. Only 7% of firms said that everybody in their business engages in BIM-based workflows on a daily basis. 11% of firms refrain entirely from bidding on projects involving BIM. 

Only 3% of firms use digital construction solutions on at least half of their projects. Meanwhile, 51% of firms use digital construction solutions on fewer than one-in-five projects.

More encouragingly, only 2% of firms admitted to using no digital solutions at all.