Stuck in the Analog Age: The Slow March of Construction Toward Tech
In the world of construction, where tradition often trumps innovation, the industry is facing a digital dilemma. A recent global survey by PlanRadar shows that over 70 per cent of construction firms globally, including those in Australia, are battling the complexities of digitalisation. While the trend is towards increasing investment in digital technologies, a considerable chunk of the industry still clings to its traditional roots, evident in the low adoption rates of technologies like 3D printing, robotics, and AI.
Digital Adoption in Construction: A Struggle for Momentum
Despite the evident benefits of digitalization, the construction sector’s shift toward technological integration is advancing slowly, amidst significant challenges. While there’s visible investment in areas like energy efficiency and Building Information Modelling (BIM), the industry’s overall engagement with digital technologies is lukewarm. This cautious approach is particularly marked in Australia, where a blend of ROI concerns and high implementation costs hinder widespread adoption. The hesitation reflects a broader industry trend, revealing a gap between recognizing digital potential and actualizing it. Consequently, Australian construction companies are cautiously navigating this new digital terrain, balancing potential gains with perceived risks and costs.
Investment Trends: Prioritising Software and Sustainability
The next three years in the construction industry are poised to witness a significant shift toward investing in construction and real estate management software. This trend is in line with the experiences of industry professionals who have noted tangible cost savings through the adoption of property technology. Additionally, there’s an increasing focus on technologies that champion environmental sustainability. This shift indicates a growing recognition within the sector of the dual benefits of digital tools: operational efficiency and a positive environmental impact, reflecting a more holistic approach to technological investment in the construction and real estate industries.
Challenges in Implementing New Technologies
PlanRadar’s global survey casts a spotlight on a pivotal challenge within the construction industry: the struggle to shift from traditional practices to adopting new technologies. This challenge is particularly pronounced in markets like Australia, where entrenched stakeholder perspectives and concerns about return on investment (ROI) act as substantial barriers. This resistance underscores a broader industry issue – the difficulty in reconciling long-standing operational methods with the rapidly evolving landscape of technological innovation. The survey’s findings emphasise the need for a change in mindset to fully leverage the benefits of digital transformation in the construction sector.
Growth Prospects in the Digital Space
Despite the hurdles, there’s a growing sense of optimism about digital investment in the construction industry. The survey reveals that over half of the respondents are planning to increase their budgets for digitalisation. This trend shows notable geographical variation, with countries like Australia, Hungary, and Romania demonstrating a particularly strong commitment to ramping up their digital spending.
Leon Ward, PlanRadar’s Digital Construction Specialist for Australia and New Zealand, reflects on this trend, stating, “The adoption of digital construction technologies is a step towards a smarter, safer, and more sustainable future in construction. We are enthusiastic about the continuing growth in digitisation and the broadening adoption of technology in Australia’s construction sector in the years ahead.”
More insights from PlanRadar’s Ebook, ‘Digitalisation In the Construction and Real Estate Sector’, can be found here.
