There are few industries as important to the British economy as construction. From making up six percent of the UK’s GDP and employing about eight percent of the nation’s workforce, the sector is a vital cog that helps our country continue to move forward. Despite this importance, the sector has been said to fall behind other industries in terms of its proliferation of technological adoption. This lack of digitalisation has been frequently cited as a sore-spot by leading experts and commentators. Most notably, in Mark Farmer’s influential 2016 report ‘Modernise or Die’, digitalisation was highlighted as a key issue, which the industry must address if it wishes to continually evolve.
Furthermore, McKinsey’s report ‘Imagining construction’s digital future’ highlighted the plateauing productivity levels in construction, far outpaced by the total economy’s performance. It also went some way to define what is meant by digitalisation. When it comes to this buzzword, we often hear it, see it and even say it – but how can it be defined and by what markers are we measuring it?
What is Digitalisation?
According to McKinsey, digitalisation can fall into three categories: Assets, Usage and Labour. Activities in these areas are given a RAG rating for their levels of digital asset stock, digital spend on employees, digital interactions and digital transactions amongst others. Anyone still receiving faxed orders and carbon-copy proof of delivery documents will easily see how construction can seem stuck in the red zone with only Agriculture for company, when compared with its more digitally advanced fellows in transportation, hospitality, education, government, utilities and chemicals.