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Construction Tech Review | Friday, October 07, 2022
Despite considerable challenges, Singaporean construction companies show confidence and optimism about the industry's future.
FREMONT, CA: Despite substantial obstacles, Singaporean construction companies show confidence and optimism about the industry's future. Tracking Technology in Asia Pacific Construction in 2022 report was published by Procore Technologies, Inc., a top global provider of construction management software. The report examines the general sentiment of the industry, the digital maturity and adoption of construction technologies, and the challenges and opportunities that businesses face. It spans five markets in the Asia Pacific and gathers insights from more than 1,100 respondents within the construction industry.
Half of the Singaporean respondents agreed that the pandemic accelerated their investment in digital transformation. Persistent challenges like the labour shortage, disruptions to construction work due to pandemic restrictions, the rising cost of materials, and supply chain problems continued to serve as a catalyst for technology investment.
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In Singapore, 93 per cent of respondents were optimistic about the state of the industry over the coming 12 months, and about half of the construction businesses anticipated an increase in the quantity or value of projects during that time period. The top issues cited by industry participants included managing staff, keeping up with new building and construction technology, dealing with the rising cost of raw materials and equipment, and dealing with uncertainty and lack of visibility regarding the potential pipeline of future work.
According to the vice president of Asia for Procore, Singapore construction decision-makers remain resilient in the face of continuous challenges in the global construction sector and continue to demonstrate strong confidence and optimism in the approaching months. This optimism is indicative of the tactics used by Singapore's building industry. To determine where the gaps are and how their competitors are speeding their digital transformation journey to support business success, the industry as a whole can use our research as a benchmark.
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Embracing Digital Transformation is Essential to Overcoming Obstacles
According to additional research from Procore, Singaporean construction businesses are well on the way in their digital transformation journeys at 61 per cent, which is higher than the APAC average of 58 per cent. This indicates that Singaporean construction businesses understand the need for digital transformation to address the labour shortage.
Construction decision-makers know that technology offers a variety of advantages for the sector, including increased customer experience and resource efficiency through reduced rework.
Two-thirds of construction businesses list improving employee soft skills, technological skills, and trade skills as a strategy to increase productivity and profitability as part of their digital transformation roadmap, while about one-half of construction businesses think that enhancing access to project information will have a similar effect. Intriguingly, Procore's research revealed that paper is still a popular medium for estimating and pricing processes, environment records, and site activity records for Singaporean construction decision-makers.
However, more than half of construction companies concur that in order to continue their digital transformation journey, government help is necessary. Construction decision-makers also identified changing ingrained attitudes and behaviours 38 per cent and a lack of assistance from technology suppliers and providers 39 per cent as major obstacles to digital transformation.
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