Construction 2025: Lessons from 411 Industry Leaders
Quickbase surveyed 411 construction leaders in the US and UK in October 2024, from Directors to C-level executives, including CEOs. The survey explored the biggest challenges in the workforce related to labor concerns, the skills gap, budget and project issues, and more.
The State of Construction Report discusses the questions but also provides solutions.
Challenges
Unsurprisingly, the availability of skilled labor stood out as a critical challenge for construction leaders. 76% of construction respondents say labor shortages impact their ability to win new work. Furthermore, 88% say labor shortages impact their ability to complete work on time. 82% of respondents are concerned about losing experience and institutional knowledge as skilled workers retire in the next 1-2 years.
Managing costs is another notable issue. 95% of respondents have experienced unexpected or increased costs in the last 12 months, leading to a project exceeding budget. Over half of the survey respondents said staying within budget constraints is the top project management challenge.
Digitalization is progressing in construction, but automation still needs to catch up to other industries. Manual information-related processes dominate; only 12% of companies use fully automated software like an ERP system.
My takeaways
The report provides a few notable angles and perspectives. Here’s how I would summarize the actions for companies wanting to stay ahead:
Consolidate for efficiency
Construction’s digitalization has been rapid recently. However, it often seems to be patching individual deficiencies on a project level.
We should shift the focus from digitizing tasks to creating cohesive systems that reduce complexity and improve productivity.
Consolidation, using automation platforms instead of separate point solutions, has proven a successful strategy for many companies.
The report mentions Conexon, a broadband network design and construction firm using Quickbase. The potential savings from consolidation for Conexon are in the millions. Consolidating tools saved more than $100,000 in software expenses and improved productivity by saving users an hour daily.
Integrate Gen Z’s digital skills
New employees bring fresh ideas and the latest digital skills, including how to use AI tools effectively.
91% of respondents say they use paper in their manual processes, while Gen Z may not use a piece of paper in their schooling or work for weeks.
The report’s emphasis on mutual upskilling—older workers teaching field skills while younger workers drive digitization—is a progressive approach.
Identify and eliminate waste
Quickbase uses the term ‘gray work’ to denote unnecessary information-related tasks. According to the latest Gray Work Index, 58% of workers spend less than half their typical workweek on meaningful tasks.?
Companies should look for automation solutions that can handle gray work, such as manual data entry and reporting, which drain valuable time and resources.
Project managers should have real-time insights into project progress to address issues proactively before they affect timelines.
2025 and beyond
Construction's requirements for productivity, sustainability, and proactiveness are high and will continue to increase. Systematization and the use of technology are essential to thriving in this business environment.
Technology can be a competitive advantage for some businesses and is necessary for all. It should be an integral part of a business strategy, not just an operational consideration.
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MY NEWS PICKS OF THE WEEK
NBS sustainability report finds less than 50% of projects are sustainable
?? The NBS ‘Sustainable Futures’ report reveals critical insights into sustainability in UK construction.
??? Only 40% of projects achieve sustainability targets, reflecting a drop compared to 2014. ?? While 90% of surveyed professionals have worked on projects with sustainability goals, just 16% report that all their projects include such goals.
?? Key barriers include cost (63%), lack of client demand (50%), and insufficient government policies (36%).
Signaling to sidings: the state of BIM
?? Attending the Autodesk Rail Summit in Copenhagen, design engineers explored BIM’s role in transforming the rail sector.
???? Autodesk’s software, including Civil 3D and Revit, aids visualizing and testing railway infrastructure digitally before construction.
↗? The challenge lies in managing data efficiently across the lifecycle, especially when upgrading existing systems. “It’s much more complex than a lot of other projects we see in infrastructure, and that’s because often you’re not building a brand new rail system, you’re retrofitting or upgrading or improving existing infrastructure”
?? Arcadis showcased its collaboration with ProRail, using Autodesk tools to develop their “DynDash” strategy, streamlining railway data management and enhancing digital project delivery.
?? Embracing digital twins is crucial for innovation and efficiency in rail projects.
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