Procore: 77% of Southeast Asia’s construction businesses are committed to integrating data into operations
Despite recognizing the importance of data, more could be done to help construction businesses make strategic use of data.
Procore Technologies Inc., a leading global provider of construction management software, released its annual construction industry benchmark report entitled, “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 confidence, 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 percent) that better data management can bring benefits to their businesses. Respondents also estimated that on average, 22 percent 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 percent of companies surveyed in Southeast Asia have laid the foundation for a data strategy. Additionally, although 77 percent are planning to design and implement a data strategy over the next 12 months, more than half of these companies 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.”
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, reduced reliance on human labour, resource efficiency through fewer errors or less rework, improved build quality, and improved ability to handle more projects as benefits of technology adoption.
Correspondingly, more than three-quarters of businesses surveyed (77 percent) 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 percent), as compared to other established businesses.
Of the technologies that will be the biggest drivers of change in the next three years, construction management platforms take the lead (55 percent), followed by payments technologies (38 percent), pre-fabrication (34 percent), big data (33 percent), and next-generation BIM (30 percent).
Optimism across the Southeast Asia’s construction industry
Overall, there is optimism among the construction industry professionals surveyed. When polled on the construction industry outlook in Southeast Asia, 88 percent of respondents expressed confidence in the industry’s market conditions over the next 12 months.
“The How We Build Now report was developed as a research tool to reflect on the issues impacting the industry at a moment in time. Through this report, we hope to inspire new conversations and share how construction leaders are bridging the gap between challenges and solutions,” concluded Karemacher.
