In May, we published the results of our international survey exploring the state of digitalisation in the construction industry – it asked 400 construction executives in France, Spain, Singapore and Japan about their views on digital transformation in the sector. If you missed it, you can download the full 20-page report here.
The research showed that the average profit margin for a construction project is just over two per cent – an eye-catching finding as, compared to other global industries, this margin is very small. For example, recent data published in January 2020 (Stern School of Business) shows that financial services has an estimated profit margin of 27 percent, and in pharmaceuticals it is 18 percent. This data is from before the true implications of COVID-19 were known, so we’d expect all industries to experience a temporary impact on margins because of the pandemic. However, construction had far less room for manoeuvre to begin with, so the sector needs to act quickly to optimise its operations and increase productivity – which will also help boost profitability.
One way to optimise operations is through digitalising the manual and paper-based processes that many construction firms still rely on. One of the biggest benefits from doing this is that it makes collaboration and communication much easier – this is important given that 62 percent of respondents to our research said a lack of collaboration is the biggest cause of delays on construction projects. Some of the latest features added to Finalcad will help companies improve collaboration, from easily capturing and sharing actions, to quickly adding external users for more seamless working. Users can even fine-tune how Finalcad works for them by personalising notifications to prioritise the most important jobs.
The Finalcad research has been well received by our customers and partners, and was covered by several global publications. Here are some of the highlights:
- In Singapore, business publication Frontier Enterprise and IT publication Future CIO discussed how COVID-19 is now highlighting the benefits of digitalising operations and supporting remote working.
- In Spain, technology publications CIO Magazine, IT User, and HayCanal all focused on the fact that the construction sector is under-digitised.
- In France, several construction publications covered the research, including BatiJournal, BatiWeb and BatInfo, picking up on the impact that a lack of digitalisation has on profitability.
- Our CEO, Franck Le Tendre, also sat down with Bati Radio to discuss the research and the issue of digitalisation in detail, you can listen to that interview here.
The findings of the research are an important read for construction leaders worldwide, and if you want to find more information on how Finalcad can help your organisation, get in touch. Later in the year, we’ll also be publishing the second set of results and another report – looking at everything from green construction to the concept of the smart city. You can register your interest in receiving part two, here:
