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Construction Tech Review | Friday, October 07, 2022
In the Asian-Pacific (APAC) construction industry, the availability, functionality and affordability of technology and IT are constantly improving.
FREMONT, CA: The accessibility, usability, and affordability of technology and IT are constantly evolving in the Asian-Pacific (APAC) construction sector. Large-scale construction and infrastructure projects have previously demonstrated the value of software applications and equipment.
Although adopting technology and IT can significantly affect the bottom line, many businesspeople in the construction industry still hesitate to invest the time and money necessary to integrate these new technologies.
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Several causes drive the requirement for construction organisations to retain focus on ongoing expansion. Consider the enormous amount of potential business.
According to the Australian Bureau of Statistics, the value of new residential buildings to the Australian economy as of December 2017 was USD 28 billion. In addition, the Smart Cities Council Australia New Zealand (SCC ANZ) launched the Digital Built Australia campaign this year to encourage the construction industry to adopt technologies like building information modelling (BIM) and the Internet of Things to increase productivity.
Southeast Asia's industrial sector is also thriving. In fact, according to Global Construction 2030, a study of the construction and engineering sector released by Global Construction and Oxford Economics, the expected value of the region's construction market will exceed USD 1 trillion by 2030.
There is a tonne of evidence to support the idea that connectivity and digitalisation will transform the way construction companies operate while improving their financial performance.
According to the World Economic Forum, whenever new technologies have fully permeated this fragmented industry, the outlook is for an almost 20 per cent decrease in overall lifespan costs of a project, as well as major gains in completion time, quality, and safety.
According to The Boston Consulting Group, full-scale digitalization will lead to huge annual global cost savings for non-residential construction, of the order of USD 0.7 trillion to USD 1.2 trillion, 13–21 per cent in the design, engineering, and construction phases, and USD 0.3 trillion to USD 0.5 trillion 10–17 per cent in the operations phase.
Even more persuasive is a study by the McKinsey Global Institute, which labels the construction industry as one of the least efficient in the entire world. Over the past 20 years, other industries have increased worldwide labour-productivity growth by 3 to 4 per cent yearly, but construction has only averaged 1 per cent.
The news is that the industry can increase productivity by up to 50 per cent by implementing best practices, including technology adoptions and IT upgrades, generating a phenomenal US USD 1.6 trillion profit bonanza.
Indeed, if the construction industry wants to stay effective, contemporary, and successful, it must change toward a digital future and accept the upheaval it brings.
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