How can construction boost productivity and profit?

The average Australian construction company spends 12% of its time on rework.

That’s the headline grabber from Procore’s new benchmark report, How We Build Now 2022 – Tracking Technology in Construction.

Australian construction companies have faced a perfect storm of rising prices, labour and materials shortages, supply bottlenecks, interest rate rises and extreme weather events. These factors have contributed to double-digit price spikes and squeezed construction profits.

So, it is no surprise that Australian construction leaders are approaching the future with caution, says Procore’s Asia Pacific Vice President, Tom Karemacher.

Procore surveyed 1,138 construction leaders from across the Asia Pacific. Of those, 314 were in Australia. Views were also canvassed in Malaysia, New Zealand, Philippines and Singapore.

Sentiment across the region is strong. In fact, 91% of respondents feel confident in the 12 months ahead. But this falls to 85% in Australia.

But an optimistic outlook is not the only area Australian companies are behind their regional peers.

Australian construction companies lag in almost every area of technology adoption and investment. This includes artificial intelligence, building information modelling and internet of things technologies.

“Shiny Hollywood technology catches headlines,” Karemacher says.

“But a third of Australian construction companies still use paper processes.”

How We Build Now finds 27% of Australian construction companies use paper to capture, track and manage data.

Despite this, 49% of all respondents said digital technology would help them save money through fewer errors and less rework.

This is not limited to small businesses. Some of the region’s largest companies rely on analog systems in the digital age, the report finds.

Procore will launch How We Build Now via live stream on Tuesday 31 May. A panel discussion will include Matthew Press, Executive Director, Compliance & Dispute Resolution, SafeWork NSW & NSW Fair Trading, and Meriton’s National Director of Construction, David Cremona.

“Our report suggests a direct correlation between positive industry sentiment and the intention to adopt technology,” Karemacher adds.

“The country with the most optimistic outlook is the Philippines. This is also the country embracing digital technology at speed. Australia, the country with the lowest sentiment, is most cautious about digital transformation.”

Digital transformation is beset by obstacles. Costs and changing behaviour are the two biggest, according to How We Build Now.

But the opportunities are clear: quality construction, less rework and a better client experience.

“Our goal is to spark new conversations and to drive construction up the digital curve,” Karemacher concludes.

Join Procore on Tuesday 31 May 2022 for the live stream launch of How We Build Now 2022.

The event will deep dive into the report findings to understand current obstacles and future opportunities. What are the top five headaches on the horizon? How are leaders using technology to transform construction? And what tools are best to reduce errors and rework? Register for How We Build Now today to answer these questions and more.

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