Does the construction sector have sufficient digital capacities for the smart city?

Finalcad, leading software publisher in the construction sector, publishes the results of its study conducted among 400 construction executives in France, Spain, Singapore and Japan dedicated to the future of construction and digitization.

This study reveals that almost half (47%) of respondents believe that the construction sector does not have sufficient digital capacities to meet the demands of the smart city. This result calls out as intelligent development continues to gain momentum across the world.

As an example, in anticipation of the Olympic and Paralympic Games in Paris in 2024, the French government has said that new construction and facilities should be sustainable and “smart”. To meet this requirement, construction companies must address their digital gaps and, with the current impact of COVID-19, accelerate their digital transformation now, at the risk of missing out on important opportunities.

The challenge of the digital transformation of the construction sector

Today, the sector seems relatively ready to face the challenge of digitization: in fact, 95% of respondents indicate that their company is "quite prepared" in terms of big data collection and adoption of digital technologies.

Brakes that persist

Some barriers remain, however, such as 68% of respondents claim that their main difficulty, in terms of smart development, is their inability to collect data in real time. In this area, more than a quarter of them (28%) also point to their inability to create the digital “footprint” of a building or an asset.

Overcoming these obstacles will be essential for smart development, but also for “green” construction. For example, the European Commission is currently setting up Level (s), a new structure which will make it possible by the end of 2020 to adopt a new approach to the development of sustainable buildings. Level (s) encourages builders, architects and public authorities to think about the life cycle of a building, from the purchase of materials to its eventual deconstruction and recycling of materials. However, the study concludes that construction companies are not yet ready to adopt this type of approach. Indeed, many of them cannot collect and communicate data concerning the origin of materials (32%) or the percentage of waste materials recycled on a site (42%).

“COVID-19 has hit the construction industry hard, and corporate sales have absorbed most of the impact. Our study shows that profit margins were already stagnant at around 2% before COVID-19. While there is no doubt about the extreme difficulty facing the sector, it offers construction companies the opportunity to go digital in order to secure their future. By prioritizing immediate digitalization, they will be able to take advantage of future trends such as smart cities and green building. In doing so, they will be able to play their role in contributing to a more sustainable future, while accessing new sources of income essential to their recovery. "
-Franck Le Tendre, CEO of Finalcad

The study also reveals that digital skills gaps are a barrier to digital transformation for most construction companies: 96% of those surveyed believe that their employees do not have the skills necessary to use digital applications and tools in the workplace. to some extent.

Towards an acceleration of digitization for greater productivity and efficiency

To meet this challenge, construction companies must invest in intuitive solutions that prioritize user experience and ease of use. All employees will thus be able to use these new tools, regardless of their current skills. By promoting the adoption of digital tools through this approach, digitization will accelerate, as will productivity, efficiency and collaboration between projects. With 97% of construction executives admitting to having some difficulty working collaboratively and easily sharing information, it's especially important to catalyze this change.

“Reducing digital skills gaps will play a crucial role in contributing to effective collaboration and communication in the construction industry. It is also essential to recover from the upheavals caused by COVID-19, which has considerably changed the way businesses operate, in offices and on construction sites. Creating the first digital workplace will allow construction companies to lay the digital foundation for their future success. Crucially, the digital working environment is also much more attractive to young employees, given that by 2025, 75% of professionals will be millennials. This approach will allow businesses to take advantage of post-COVID-19 business trends and opportunities. "
-Franck Le Tendre, CEO of Finalcad

Finalcad 2020 Leaders Study: "The digital future of international construction" is the second part of the report which aims to analyze the digitization of construction.

To view the full results and download the report, click here

The study was conducted in February and March 2020 for Finalcad and carried out by Coleman Parkes, an independent market research company with 400 people working in commercial and residential construction companies with a turnover of over 51 million. dollars per year in France, Spain, Singapore and Japan. A total of 200 site managers / directors managing an average of 10 sites, and 200 head office managers / directors were interviewed. On the sites, the respondents were project managers, responsible for a site; at headquarters, they were operational unit directors responsible for construction.

See the “Demographic Information” section for more details.