Current situation in the construction sector
Protim R?i?nik Perc
Protim Architects and Engineers - the premier integrated design office in the region.
Every month our coworker Jose Luis Rodríguez Hernández , will give you information about our #construction sector, how it is developing, what the trends are and how our company Protim R?i?nik Perc can offer you more transparent and sustainable project. Are you prepared for the future of our sector?
Are you interested in how the construction sector is currently doing and if there is an area for improvement in the project development? Stay until the end and find out!
In the European Union, the construction sector generates twenty million jobs and 10% of GDP. However, do you think that it could do better?
Let's focus on describing the current problems from the point of technological adoption, sector productivity, staff experience, consequences caused by COVID 19 and current sociopolitical issues.
The goal of sustainability while making continuous progress? Is that possible?
In 2012 European Union set the goal to reduce 90% of carbon emissions by 2050 (European Commission, 2012), which means that we need to rethink how to carry out our construction processes and what type of consulting and design companies should we be looking for to hire.
Our goal as Protim R?i?nik Perc is to offer the best to our clients, provide designs, services and products that comply with sustainability regulations.
"The more you know about the past, the better prepared you are for the future." ???????????????????????????????????????????
— Theodore Rosevelt -
The construction sector is one of the largest in the world economy, with about $10 trillion spent on construction-related goods and services every year. Nevertheless, it has only grown by 1% worldwide over the past 20 years.
Is there added value in the final product?
Compared with other sectors, most construction companies do not invest enough time in adding value to the final product. As a result, the lack of productivity causes poor economic benefits for construction companies and their clients. In the end, there is a minimal profit with significant risk for investment.
Some of these problems are caused by the fact, that construction is one of the most fragmented industries in the world. As a result, in some companies, there is a misallocation of risks, creating inefficient projects, not enough time to plan and think about project management and implementation, and the "icing on the cake" is the role of corruption.
One of Protim R?i?nik Perc strongest values is fair and clear relationships with our clients. Thanks to BIM technology, our client is irreplaceable part of the project and has access to the latest, reliable information. That makes the process of preconstruction and construction transparent for all the parties included. Protim R?i?nik Perc is independent consulting and design company of architects and engineers. We support our clients through all the project phases - from the initial concepts to the project close-out and later facility management. Since we have all the experts under one roof, the communication is fast and flexible.
For the average construction company, almost 40% of the collected information is inaccurate, incomplete, inconsistent, or untimely. In the end, wrong information is responsible for 14% of all construction rework. Additionally, productivity is strongly related to technology adoption; it was not surprising to find that part of the lack of productivity is linked to the lower uptake of technology in our sector compared to others over these 50 years. (McKinsey Productivity Sciences Center, 2018).
Digital transformation in the construction sector
Companies' main problems during the digital transformation involve investing a considerable amount of money in software and hiring qualified Human Resources. Unfortunately, most companies in this sector have been failing for decades to implement technological improvements that would have prepared them for the future, due to the short-sightedness of market demands and developments. This makes it very difficult for these companies to make such changes, as their initial investments are costly. Moreover, the time it will take to adopt the change would affect the delivery of projects and their services in general.
Protim R?i?nik Perc is a company that always strives for continuous improvement to meet the future needs of our customers. Within our services, which are being upgraded with digital transformation, some of the most specialised are project development and facility management using BIM technology, site monitoring and control via a centralised cloud for information exchange, laser scanners and photogrammetry to obtain the current state of the infrastructure. Our aim is to offer our clients the best tools to mitigate project risks by providing transparency and access to the most valuable information for them.
Click here for more information about our services.
How did COVID affect the construction?
Despite the unfortunate facts of COVID, the good news is that there is exponential growth in the digitisation of activities. An example is the potential benefit of remote work, which has increased up to 20% in the last few years, showing the additional benefit that digitisation brings in terms of the relocation of jobs in our sector. (McGraw Hill Construction, 2021).
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For the current productivity gap, it is essential to improve or look for companies that are prepared for change since we will have great growth in our sector in the next few years. Only in 2020, the European Union made a total investment in the construction of 1,4 trillion, which is equivalent to 10,7 of the EU's GDP, and growth of up to 13,5% is expected in 2030.
Most construction companies are stuck in an old workflow, leading to lower productivity compared to other industries. The European Union requires companies to improve their processes to meet sustainability goals and increase their GDP. Digitisation and continuous improvement are the keys to the continuous growth of the industry and a higher return on investment. Companies like Protim R?i?nik Perc are committed to improving the transparency of projects through the active collaboration with our clients and the use of technologies that enable BIM processes.
In the next blog post, we will cover in more detail how digitisation, BIM and other vital factors can help the construction industry to be more productive.
Resources & Materials
3.?????https://rsmus.com/insights/industries/construction/construction-outlook.html https://www.monitordaily.com/opinion-posts/where-the-construction-industry-is-heading-in-2022/
6.?????https://www.investmentmonitor.ai/sectors/construction/the-state-of-the-construction-sector-global-march-2022 https://www.bigrentz.com/blog/construction-trends
11.?https://www.mckinsey.com/~/media/mckinsey/business functions/operations/our insights/reinventing construction through a productivity revolution/mgi-reinventing-construction-executive-summary.pdf
12.?https://www.mckinsey.com/~/media/mckinsey/industries/advanced electronics/our insights/construction and building technology poised for a breakthrough/construction-and-building-technology-poised-for-a-breakthrough-vf.pdf
14.?European Construction Sector Observatory (2021) Digitalisation in the construction industry.
15.?McGraw Hill Construction (2021) The future of work after COVID-19.
16.?McKinsey Global Institute (2017) Reinventing Construction: A Route To Higher Productivity, McKinsey & Company. doi: 10.1080/19320248.2010.527275.
17.?McKinsey Productivity Sciences Center (2018) Imagining construction's digital future, International Pest Control.
18.?Santhanam, N.et al.(2020)Construction and Building Technology – poised for a breakthrough?, McKinsey & Company
19.?Comisión Europea (2012) Estrategia para una competitividad sostenible del sector de la construcción y de sus empresas, Comunicación de la comisión al parlamento europeo y al consejo.
Senior Design Manager | MSc BIM | MSc Arch Architecture | Interior Design | BIM | Computational & VDC | Management | Urban Planning | Landscape | Sustainability | Green Energy | AI & Automation | Data Analysis
2 年José Luis Rodríguez Hernández ????????