WANTED! A Europe Fit for the Digital Age

“I’m a tech optimist”! It could have been my words, but the words are Ursula von der Leyen’s, President of the European Commission. There is something quite comforting in having a tech optimist laying the foundation for a digital future in Europe.

“I am a tech optimist”!

Earlier this week, Margrethe Vestager and the European Commission presented the long awaited master plan for a future digital Europe. I know there is a long way to go until the final plan becomes a reality, but it’s a good starting point!

And we truly need tech optimists at the front! The figures say it all. Investment in research and innovation in Europe is still a fraction of the public and private investment in other regions of the world. As an example, some €3.2 billion were invested in AI in Europe in 2016, compared to around €12.1 billion in North America and €6.5 billion in Asia. And yes, I know we must approach AI investments with a very cautious eye to the future path of AI, but if we are not involved, we can't influence.

LETS THEN LOOK AT DIGITAL CONSTRUCTION

If we then focus on construction, the numbers are even worse. Not only for investments in AI, but investment in all kinds if IT and new technologies. Less than 1 percent of revenue is being spent on investment in IT and new technologies ( see the Construction Digital Maturity Ladder, if you want to compare ). Well, it’s just an industry generating around $10 trillion each year... I guess that’s why you need to be a tech optimist to survive in construction ;-)

Luckily, we have a whole company filled with optimistic techies. With origins in both Denmark and Belgium, 23 nationalities in 6 countries and headquarters in Brussels and Copenhagen, we are Europeans by heart and Europe is our core market. So we are very much aligned, when the President of The European Commission states that digital transformation can power European economies and help us create European solutions to global challenges. In LetsBuild, we firmly believe that construction plays a vital role in that transformation.

Today, the construction industry often plays a rather anonymous role in national as well as European policy making. Nevertheless, the sector is an integral part of European economy, which the numbers also confirm: 9 percent of European GDP and 6.5 percent of all employment stems from construction. The environmental impact is also substantial: 35% of global waste originates from construction and 40% of global CO2 emissions are linked to buildings. This within an industry that struggles with only 35% worker efficiency and some of the lowest investments in IT and new technologies. 

WE ARE HEADING INTO A FUNDAMENTAL TRANSFORMATION

But as an industry, we are heading into a fundamental transformation, shaped by the mega trends that are influencing all citizens in Europe and the rest of the World.

So, in essence, the significance of this sector is reflected in its impact on many of the main challenges of the European Union: sustainable growth, jobs, energy efficiency, circular economy, climate change, demographic changes, health and safety, education, training and not least digitalisation. And digitalisation in effect impacts most of the above mentioned challenges. 

We need to put construction on top of the European agenda and make it a vital part of a Europe’s digital vision. The European construction sector is already adapting to the digital transformation. However, we cannot continue this journey on our own. A massive digital transformation requires the appropriate political, regulatory and financial framework at European Union level. Especially, taking into account that a large amount of SMEs in construction will need to adapt quickly to keep up with increasing competition from East and West. 

By bringing in construction as an important piece of the final digital master plan, the European Commission can empower a vital industry - and make Europe the global leader in construction!

https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age_en

Best wishes for a Digital Europe

Ulrik Branner

Boardmember and Executive - LetsBuild