Ontario Construction News staff writer
A new report, Construction in a digital world, by the Canadian Construction Association (CCA) and KPMG in Canada, identifies opportunities for Canadian construction firms to adopt innovation.
As many as 75 per cent of construction firms surveyed by KPMG and CCA rated their digital maturity as fairly low relative to their competitors, the report finds. Further, almost three in five admit their organization “needs to moderately or considerably” adapt their digital strategy, with most unsure about which technologies and applications would offer them a competitive advantage, the organizations said in a statement last Tuesday.
“The industry is on the cusp of digital transformation with leading firms already adopting technology – from analytics to drones, robotics, 3D printing, and augmented reality – to yield improved productivity, safety and decision-making,” says CCA president Mary Van Buren. “Our survey reveals, however, that smaller and medium-sized firms are not yet capitalizing on the benefits technology can bring. For many contractors, the low bid model simply does not allow for innovation or to invest in new technologies.”
The report looked at:
- The current state of digital maturity in the industry
- How to get the right people at the table
- Where construction companies are putting their digital investment dollars
- What hiring, upskilling and building a digital team looks like
- Risk management threats and concerns
While some firms have invested in digitizing their front and back-office operations to reduce redundancy, cost and improve the employee and customer experience, the report suggests there is even greater opportunity to be gained from embracing technologies, such as predictive analytics, building information modelling (BIM), digital twins, wireless monitoring and autonomous equipment, and augmented reality (AR).
Construction companies embracing digital transformation will achieve greater efficiency, generate substantial productivity gains, improve onsite safety for workers, reduce the cost of goods sold, and modernize operating models, the report says.
“Digital innovation is a continuing process, not an end game,” says Lorne Burns, KPMG’s national industry leader, building, construction and real estate, based in Vancouver. “Many construction entities rely on legacy systems, and those that improve their competitive positioning will use this time as an opportunity to integrate disparate systems and adopt new ways of operating.”
Too often, companies implement a technology concept or software package to reduce costs or get a quick payback on a single project only to leave the tool with that project and never use it again. This issue is compounded when a company grows through acquisitions, each with their own set of legacy technologies, the report says, pointing out the necessity of having an integrated strategic digitization strategy.
“Many construction firms have had little incentive to invest in technology with current procurement practices placing much of the project risk and associated costs on the shoulders of contractors. The benefits, however, are becoming more apparent. With a workforce shortage, climate change realities and solutions reaching greater maturity, the industry is poised for significant transformation,” the report concluded.
The report’s findings are available here.