Property Australia

Why technology holds the key to productivity and profit

PROPERTY AUSTRALIA June 18, 2019

A recent report from Procore finds large property and construction businesses expect to become “technology leaders” in 2019, with accelerated adoption of technology a key driver of productivity and profit.

How we build now - Tracking technology in construction 2019 distils survey responses from 170 construction companies in Australia, finding a “clear shift towards higher technology adoption as businesses recognise the efficiency and productivity benefits”.

Importantly, a third of large businesses expect to become technology leaders in 2019, adopting 10 or more new technologies. Ninety per cent of these businesses expect revenues to increase as a result.

Businesses are increasingly embracing digital project management tools, business intelligence platforms, computer-aided design, big data analytics, 3D printing and pre-fabricated parts.

“Medium and large firms tend to use these as well as more exotic technologies such as AI, machine learning, drones and robotics,” the report finds.

As technology is integrated into the construction industry, its correlation with business success becomes more apparent, the report finds.

“Being able to utilise and integrate with a variety of software platforms means an increased ability to find clients, reduce costs, improved productivity, create a better experience for their stakeholders, and much more.

“Businesses currently adopting high levels of technology have experienced a notable change in the volume and value of their projects over the past year.”

While 67 per cent of those surveyed, overall, expect to see an increase in productivity as a result of technology adoption in 2019, this skyrockets to 91 per cent among “tech leaders”, and drops to 33 per cent for “lower tech adopters”.

Similarly,86 per cent of tech leaders expect an increase in revenue, compared with 23 per cent of lower tech adopters and 62 per cent of industry respondents overall.

The size of company also influences the technology investments, Procore finds. Internet of Things, big data, business information platforms, building information modelling and computer-aided design are “key tech” for large companies.

In comparison, medium-sized companies are looking to invest in business intelligence, augmented reality and artificial intelligence. Procore says 92 per cent of respondents in this category feel prepared for the impacts expected to unfold over the next year.

Small businesses, meanwhile, are most focused on fundamental changes to skills or jobs required. With a smaller employee base, this group can afford to be nimbler in their approach.

Sixty-four per cent are already using up to five new technologies within their business. What’s more, 2019 will see a significant increase in technology adoption, as 20 per cent become technology leaders.

These are just some of the insights in Procore’s report: How we build now – Tracking technology in construction 2019. Download your copy today.