Procore Technologies, Inc., a leading global provider of construction management software, today released its annual construction industry benchmark report ‘How We Build Now: Technology Trends Shaping and Shifting Construction – Southeast Asia 2023’. This year, the report surveyed construction decision makers across Singapore, Malaysia, and the Philippines.
The report reveals insights into the construction industry’s overall sentiment, current challenges and opportunities for businesses, how businesses are managing risks to protect their bottom-line, and the level of digital maturity and adoption of construction technologies.
Gap in the confidence and ability to harness data in construction
According to Procore’s research, construction professionals are increasingly aware of the role of technology and data in their businesses but are still hesitant about their data strategy.
Southeast Asia construction professionals who responded to the research unanimously agreed (99%) that better data management can bring benefits to their businesses. Respondents also estimated that on average, 22% of total project spend could be saved through more efficient data management.
However, despite a high awareness of how data can be used to their advantage, only 6% of companies surveyed in Southeast Asia have laid the foundation for a data strategy. Additionally, although 77% are planning to design and implement a data strategy over the next 12 months, more than half of these companies (52%) are only somewhat confident in their ability to do so.
“It is clear from our research that while construction professionals in the region have a strong understanding that data and analytical insights can help drive better business outcomes and protect their businesses, many struggle with developing clear data strategies,” said Tom Karemacher, head of region, Asia Pacific, Procore.
“While software vendors undoubtedly play a critical role in assisting construction businesses in this transformative journey, more can be done. Software vendors will need to clearly demonstrate the returns on investment, thereby justifying the indispensability of construction technology and data management.
“This will help drive the adoption of innovative solutions within construction that unlocks unparalleled value for the industry.”
Construction professionals continue to show interest in adopting technology
Despite the challenges in harnessing data, construction professionals in the region remain committed to embarking on their digital transformation journey.
Respondents cited improved cost management (42%), reduced reliance on human labour (39%), resource efficiency through fewer errors or less rework (38%), improved build quality (38%), and improved ability to handle more projects (38%) as the benefits of technology adoption.
Correspondingly, more than three-quarters of businesses surveyed (77%) revealed that they are looking to increase their spending on construction technologies as a proportion of their annual budget.
Interestingly, younger businesses that are aged below 10 years were found to be more likely to embrace technology (81%), as compared to established businesses of over 10 to 20 years (71%) and those over 20 years (68%).