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Five reasons for the digitization of the construction industry

Published 28.02.2022

Digital processes are changing all areas of our lives at an incredible speed. However, one area in which digitization is still making slow progress is the construction industry. In this article, we will show you why you should not miss out on digitization in the construction industry and what potential it holds.

The signs are pointing to change in all sectors, but in the construction industry, the shift toward automated processes and real-time reporting is off to a slow start. This is the finding of the PwC 2021 study "Digitalization, Sustainability and Corona in the Construction Industry" . According to the study, the gap between potential and capabilities has narrowed for only two out of seven digital solutions. For example, the potential for real-time reporting or IoT solutions on the construction site has also increased - but the capabilities in the construction industry have not.

What is the reason for the reluctance in the construction industry?

In other industries, digitization has long been part of everyday life. But what is holding back the digital transformation in the construction industry? The survey of construction companies revealed that the lack of technical expertise was the top concern. There are also fears that there is a lack of internal acceptance for the use of new technologies. Closely followed, in third place among the challenges, is security on the Internet. (Source: PwC 2021 study "Digitalization, Sustainability and Corona in the Construction Industry")

Integration and security

At first glance, the use of new technologies seems very complex. In addition, the large number of suppliers does not exactly provide a better overview; they often only offer components of one system. But they have been around for a long time, the providers of simple sensor systems that can be easily integrated into the existing infrastructure. No specialist knowledge is required for the integration or the evaluation of the data. In addition, the communication of the digital solutions is always encrypted and offers no attack surface for the security of the companies.

Five reasons to digitize your construction company

The extensive inventories and, above all, the parallel processing of many projects quickly lead to a loss of overview. It is also clear that sources of error can never be completely ruled out in the construction industry, even if work is carried out with great precision. However, the use of digital solutions can help to significantly reduce sources of error and inefficient use of resources. The following five points speak in favor of digitization:

Reduction of error sources: The use of IoT solutions relieves employees and replaces analog processes. For example, delivery bills or invoices can be automated. This saves time and costs.

General overview: An overall view of internal and external processes becomes possible. For example, the inventory can be displayed in real time and updates of devices between different projects can be displayed transparently.

Steigerung der Effizienz: Digitization ensures transparency and the efficient use of equipment.

Time and cost savings: The increased efficiency ensures faster service delivery and thus creates a more economical handling of projects. In addition, historical data can be used to optimize the inventory as needed.


Competitiveness:
Digitization can change relationships with customers. Customers who already work digitally will look for partners who are also digitized. So in order to continue to exist and grow in the market, technologies for digitization are indispensable.

Conclusion

Whether in planning, administration or construction - analog processes still exist in abundance. But all these analog procedures offer potential for partial or complete digitization. Obtaining information with just a few clicks, automated processes in the background, and fast communication - these are all things that make everyday work in the construction industry much more effective and efficient. Digitalization is by no means a short-lived trend, but a long-term task. Right now is the right time to join the digital transformation and get started in your company.


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