Autodesk releases results of digitisation in construction report

Last week, Autodesk announced the launch of its joint report with Deloitte, The State of Digital Adoption in Construction Report 2023, which surveyed 229 construction and engineering executives across Australia, Japan and Singapore’s architecture, engineering and construction (AEC) sector about how digital adoption affects them and what their outlook is in the face of such uncertain times.

David Rumbens, Partner at Deloitte Access Economics, said the survey results showed many construction businesses are investing in technology.

“The survey showed nearly nine in ten AEC businesses are investing in new technologies, and businesses with higher levels of digital adoption are more optimistic about the future and more likely to have international operations,” said Mr Rumbens. “Additionally, 61 per cent of AEC businesses see using new technology to deliver projects as a key source of growth.”

“Nearly two in five businesses are using Building Information Modelling (BIM) and cloud management software, while over a quarter of businesses are expecting to implement these technologies in the future.”

Additional key findings:

  • 96 per cent reported that previous digitisation efforts have boosted their business. ​
  • For nearly half (45 per cent) of businesses, the impact from digitisation efforts has already been high or very high​.
  • Firms using more tech than average are 30 per cent more likely to be optimistic about the future​.
  • Just under two in three (61 per cent) of businesses said using new technology to deliver client work would be a main source of revenue growth​.
  • Nearly half said that growth would also come from using digital technology to improve internal processes.
  • Singaporean businesses are most concerned about high material costs and labour shortages.
  • Australian businesses are most concerned about uncertain economic conditions.
  • Japanese businesses are most worried about economic uncertainty and lack of skilled workers. ​

Autodesk today announced that the current state of Australia’s construction industry is at a crossroad. There’s an increase in construction company insolvencies resulting from supply chain disruptions, extreme weather, higher material and labour costs and shortages, and sustainability objectives. Yet, the need to deliver more infrastructure, transport and housing projects is higher than ever.

Sumit Oberoi, Industry Strategist, APAC at Autodesk said technology is vital to improving productivity in the construction industry.

“The construction sector has unfortunately seen a number of collapses, with at least 20 construction companies in Australia folding in 2022,” said Mr Oberoi. “There are multiple factors involved such as a challenging procurement environment, labour and material shortages, extreme weather and supply chain disruptions.”

Yet, a total of $255 billion in Australian Government expenditure has been allocated to infrastructure over the four years between 2022-23 and 2025-26 – a three per cent increase over last year’s allocations. Additionally, in the October 2022-23 budget, the Australian Government announced an investment of almost $1.4 billion for vital land transport infrastructure projects in NSW alone to improve safety and reduce travel times.

“Government infrastructure and private commercial construction spend is increasing with the need to deliver more vital land, transport and housing projects across the country, and yet we’re seeing more construction companies under stress despite this increase in work,” said Mr Oberoi. “The industry is at a crossroad, and greater operational efficiencies are required to maintain competitiveness.”

“We have found that when a company adopts technology there is a direct positive impact on their revenue.”

Mr Oberoi said many Australian construction businesses understand they need to innovate. “However, some of the challenges to increasing technology adoption in the industry will require addressing, including upskilling staff, change management and budget allocation,” he explained.

For more insights, download the full The State of Digital Adoption in Construction Report 2023 by Deloitte and Autodesk.

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