Construction Industry in need of overhaul
Published by adf on Wednesday, 15 April 2015
Construction industry needs overhaul to bolster productivity, says new report
74% of construction executives say lagging productivity is a major challenge for the industry
Productivity is an industry-wide issue rather than firm-specific
Lack of skilled labour most cited obstacle, followed by procurement methods, contract terms and government requirements
Nearly three of four (74%) firms with high productivity are early adopters of new technology
A new report published today by The Economist Intelligence Unit says the construction industry needs a major overhaul if it is to bolster its declining productivity.
Rethinking productivity across the construction industry: The challenge of change, sponsored by Autodesk, reveals that 74% of construction executives say productivity is a major challenge recognised by their leadership. But almost half (48%) admit that their firm has failed to develop a coherent strategy to address the decline.
Productivity is an industry-wide issue rather than firm-specific. Executives identified the biggest obstacles to improved productivity as: a lack of skilled labour (first); clients’ procurement methods and contract terms (second); and government requirements (third).
The report also finds that the early adoption of technology can help firms buck the trend. Nearly three of four (74%) high-productivity firms are likely to be early adopters of productivity-enhancing technologies. Respondents say technologies supporting greater collaboration and information-sharing are best positioned to boost productivity in the next three years.
Craig Halvorson, senior vice-president of operations at ARCADIS, a Netherlands-based design and construction consultancy, said:
“Productivity is a very relevant topic right now. The increased competition for talent, coupled with ongoing pressure from clients to be more cost competitive, are making things very intense.”